Regulatory Alerts2022-12-14 | TED/FEM/PUB/FPC/01/004Illegal Activities by International Money Transfer Operators
The Central Bank of Nigeria has issued a warning to banks about the illegal activities of Money Transfer Operators, who are terminating payments in Naira instead of US Dollars as required by regulations. Banks are reminded of their responsibility to know their customers and their customers' businesses to prevent further unwholesome practices. Any bank found aiding or collaborating with unlicensed operators or terminating remittances in Naira will face sanctions, including the potential withdrawal of their Authorized Dealership license.
TRADE AND EXCHANGE DEPARTMENT 09-61637800 09-61637804 E-mail address: ted@cbn.gov.ng Our Ref: TED/FEM/PUB/FPC/001/004 December 14, 2022 To: ALL BANKS ILLEGAL ACTIVITIES BY INTERNATIONAL MONEY TRANSFER OPERATORS The attention of the Central Bank of Nigeria has been drawn to the increasing illegal activities by Money Transfer Operators in Nigeria, through banks, by terminating payments in Naira contrary to extant regulations.
This unwholesome practice has some banks partnering with unlicensed international money transfer operators who disguise their transactions and terminate same via local inter-bank transfers. Henceforth, any bank found to be aiding and abetting any IMTO/or unlicensed operator in this activity would be appropriately sanctioned.
We also wish to remind all banks that it is their responsibility to not only Know their Customers (KYC requirements) but also Know their customers' business (KYCB TRAL BANK OF NIGA requirements).
For the avoidance of doubt, all banks and International Money Transfer Operators are to pay out proceeds of diaspora remittance only in US Dollars and comply with the guidelines on International Money Transfer Operations published by the Bank.
Any bank found to be aiding/collaborating with IMTOs in terminating remittances in Naira will have their Authorised Dealership license withdrawn.
Please note and ensure compliance.
alar DR. O.S. NNAJI DIRECTOR TRADE & EXCHANGE DEPARTMENT