CBN has made a restriction on international money transfer services while increasing the application fee by 1900%. This restriction is made for all banks and Fintechs.
The announcement came on Wednesday, 31st January, via a document which also included the guidelines for the operations of International Money Transfer Operators.
“All banks are prohibited from operating International Money Transfer services but can act as agents,”
the CBN said in the document
“Also, Financial Technology Companies are not allowed to obtain approval for IMTO. The provisions of BOFIA 2020 on the prohibition of employment of certain persons in banks shall also apply to IMTOS”
Apex bank added
The CBN directed that individuals should be excluded from the management of banks, shareholders, and officers of a bank.
This development starts from the guidelines made in 2014 when only deposit money banks were prohibited. The bank recently included the Fintechs.
In the revised edition of the guidelines, the application fee for IMTOs has shockingly increased by 1900%, from 500,000 naira in 2014 to 10,000,000 million naira.
The document says any IMTO that is planning on doing business in the country must submit its application to the Director.
“A non-refundable application fee of N10,000,000.00 (Ten Million Naira only) or such other amount that the Bank may specify from time to time and payable to the CBN through electronic transfer or bank draft,”
the document read
“Approval to operate in other jurisdictions or agency agreement (for all IMTOs)
it highlights
Evidence of tax clearance and incorporation documents in Nigeria (for indigenous IMTOS) to include Memorandum and Articles of Association (Certified True Copy), of which the primary object clause shall indicate provision of money transfer services.”
the document says
The document stated that a yearly renewal of 10,000,000 million Naira or any fee the CBN specified at intervals will be followed.
It also mentioned that the yearly renewal must be paid via E-transfer or bank draft on or before January 31st of that year.
