Diaspora remittances: Audit IMTOs’ accounts properly, CBN orders banks
The Central Bank of Nigeria said on Friday that Deposit Money Banks must ensure that proper audit of International Money Transfer Operators accounts is done to forestall further use of naira accounts for diaspora remittance purpose.
The CBN said this in a circular where it gave additional guideline to all DMBs, Payment Service Providers and IMTOs regarding the receipt of diaspora remittances.
It said, “DMBs are to close all naira accounts for IMTOs. This is to ensure that all diaspora remittances are received by beneficiaries in foreign currency only (cash and/or transfers to domiciliary accounts of recipients).
“DMBs are permitted to open new Opex accounts for the purpose of the IMTO operations, such as salary payments and other operating expenses excluding diaspora remittance receipts.”
The apex bank had on Nov. 30 announced a new policy initiative in a bid to boost remittance inflows and foster an environment that would enable faster, cheaper, and more convenient flow of remittances back to Nigeria.
According to the new policy, beneficiaries of diaspora remittances, through international money transfer operators, shall henceforth receive such inflows in foreign currency (US dollars) through the designated bank of their choice. It kicked off on Dec. 4.
It said such recipients of remittances might have the option of receiving these funds in foreign currency cash or into their ordinary domiciliary account.
