Economy

CBN to Shut Accounts of Diaspora Remittance Violators

By Obiajulu Joel Nwolu

January 23, 2021

The Central Bank of Nigeria has threatened to suspend the operating licences of operators who continue to violate rules guiding diaspora remittances into the country.

The apex bank said it would not tolerate the explicit flouting of its directive that all remittances be paid to beneficiaries in dollars.

This was contained in its circular signed by the Director, Trade & Exchange Department, Dr. O. S. Nnaji to all authorised dealers and International Money Transfer Operators on Friday.

The circular was titled ‘Modalities for payout of diaspora remittances’.

It said that this new circular was in furtherance to its earlier one titled ‘Receipt of diaspora remittances: Additional operational guidelines’.

The circular partly read, “These measures are intended to promote transparency, grow diaspora remittances and significantly improve foreign exchange inflows into Nigeria.

“Strict sanctions, including withdrawal of operating licences, shall be imposed on any individual and/ or institutions found to be aiding, abetting or directly contravening these guidelines.”

For unlicensed operators, it added, “The CBN shall not hesitate to authorise the closure of their accounts in Nigerian banks, including being barred from accessing banking services in Nigeria.”

The CBN said for the avoidance of doubt, only licensed IMTOs were permitted to carry on the business of facilitating diaspora remittances into Nigeria.

It further stated that all diaspora remittances must be received by beneficiaries in foreign currency only (cash and/ or transfers to domiciliary accounts of recipients.