CBN vows to close accounts of violators of Diaspora remittances guidelines

*The Central Bank of Nigeria restates its measures on Diaspora remittances to beneficiaries in US Dollars are intended to promote transparency, such remittances and significantly improve foreign exchange inflows into the country

Isola Moses | ConsumerConnect

In regard to the clear contravention of its directive on payment of all remittances to beneficiaries in US Dollars, the Central Bank of Nigeria (CBN) has threatened to withdraw the operating licences of operators who continue violating extant rules regulating diaspora remittances into the country.

The Bankers’ Bank stated this in a circular to all authorised dealers and International Money Transfer Operators (IMTO) titled, ‘Modalities for payout of diaspora remittances’, and signed by Dr. O. S. Nnaji, Director of Trade & Exchange Department at the CBN Friday, January 22, 2021, in Abuja, FCT.

The CBN said it would not tolerate the clear contravention of its directive that all remittances be paid to beneficiaries in Dollars.

The banking regulator stated that this new circular was in furtherance to its earlier one titled, ‘Receipt of diaspora remittances: Additional operational guidelines’.

It noted: “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.”

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

For the avoidance of doubt, only licensed IMTOs are permitted to carry on the business of facilitating Diaspora remittances into Nigeria, the CBN warned.