The Central Bank of Nigeria (CBN) has acknowledged flagrant abuse of guidelines on diaspora remittances by dealers and international money transfer operators (IMTOs), promising sanctions for flouters, moving forward.
CBN had in a memo Ted/Fem/Fpc/PUB/001/001 of January 22, 2021, signed by O. S Nnaji, directir, Trade and Exchange department, to all dealers and IMTOs lamented that the policy measures introduced November last year was aimed at among others, promoting trasparency, grow diaspora remittances, improve foreign ecchange into the country, have continued to be abused by both the licensed and unlicensed operators.
Consequently, the regulatory bank reminded them that “only licensed IMTOs are permitted to carry on the business of facilitating diaspora remittances into Nigeria, All diaspora remittances must be received by beneficiaries in foreign currency only, (cash and/or transfers to domiciliary accounts of recipients. IMTOs are NOT permitted under any circumstances to disburse diaspora remittances in Naira (either in cash or by electronic transfers), be it through naira remittance settlement accounts(which had been earlier directed to be closed), third party accounts via any other payment platforms within and/or around the Nigeria financial system.“
Good intentioned as the policy measures are, the regulator further lamented that, “It has come to our notice that some IMTOs and licensed companies continue to facilitate diaspora remittances into the country in naira, in clear contravention of the CBN directive that all remittances be paid to beneficiaries in dollars”.
Therefore, CBN says “strict sanctions including withdrawal of operating licenses shall be imposed on any individuals and/or institutions found to be aiding, abetting or directly contravening these guidelines. 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”.
Metrobusinessnews.com learnt that axe may soon fall on the deviant operators and intruders.
This is because, less tgat three weeks after the introduction of the policy on November 30, 2020, CBN isdued the girst wsrning against observed non vompliance by the dealers on December 16, 2020.
“I can tell you that CBN is in thw know of the culprits and intruders, but giving them enough opportunity and time to repent and desist because the attendant sanctions might spell doom for some of them, ” say analysts who have vast knowledge of the workings and as well familiar with some industry and CBN officials.
But, they were quick to ask for the much needed close supervision and monitoring by CBN particularly with those unlicensed operators, advising that they should be fished out and punished to serve as deterrents to other potential culprits.
