The Central Bank of Nigeria has threatened to shut the accounts of operators who violate the rules and guidelines of diaspora remittances. According to a circular that was released by the CBN, the accounts of such violators will be withdrawn.
This directive was made recently to all authorized dealers and International Money Transfer Operators and was signed by the Director, Trade & Exchange Department, Dr. Ozoemena Nnaji inorder to ensure measures are in place to promote transparency.
The new directive, which was titled ‘Modalities for payout of diaspora remittances’ was set up to complement the bank regulation titled ‘Receipt of diaspora remittances: Additional operational guidelines’ set up by the CBN to increase foreign exchange inflows.
In the circular also, CBN emphasized that its directives remains that all beneficiaries of diaspora remittance be paid in dollars which must not be violated so as to monitor cash flow and promote foreign exchange.
While addressing the unlicensed operators in the circular, the bank stated explicitly that it shall bar the services of the operators and ensure the closure of such accounts in Nigerian banks. According to the bank, only authorized International Money Transfer Operators are allowed to make remittances.
Also, the regulation emphasized that business transactions using diaspora remittances must be received in foreign currency, which according to the CBN implies that cash and transfers must be sent to a domiciliary account.