Central Bank of Nigeria has banned banks and fintechs from International Money Transfer Operations.

In its ‘Guidelines on International Money Transfer Services in Nigeria,’ the apex bank said, “All banks are prohibited from operating International Money Transfer services but can act as agents.

“Also, financial technology companies are not allowed to obtain approval for IMTO.

The new guidelines by the CBN are meant to guide the IMTOs in conducting money remittances in compliance with the regulatory framework established by the CBN.”

This new guideline raises concerns about the fate of fintechs like Flutterwave, Interswitch, Paga, and others, which have IMTO licences from the CBN.

The apex bank also increased the minimum share capital requirement for IMTO operators to $1m.

Listing requirement to be an operator the bank stated, “Any IMTO intending to operate in Nigeria shall submit its application to the Director, Trade and Exchange Department with the following documents: A non-refundable application fee of N10,000,000 or such other amount that the bank may specify from time to time; payable to the CBN through electronic transfer or bank draft.

“Approval to operate in other jurisdictions or agency agreements (for all IMTOs). Minimum share capital of $1m for foreign IMTOs and the equivalent for indigenous IMTOs.”

Punch