The Central Bank of Nigeria, CBN, has banned banks and financial technology companies (fintechs) from international money transfer services.
This significant development is contained in the revised guidelines for the operations of IMTOs, which were officially released on January 31, 2024.
The document read: “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 provisions of BOFIA 2020 on the prohibition of employment of certain persons in banks shall also apply to IMTOS.”
The apex bank also excludes individuals from the management of banks, shareholders, and officers of a bank.
In the previous guidelines issued in 2014, only deposit money banks were prohibited. However, the CBN has extended the ban to fintechs.
The apex bank also increased the application fee for IMTO licence from N500,000 in 2014 to N10 million in the revised guidelines. This is an increase of about 1,900% in about 10 years.
The document noted that any IMTO intending to operate in Nigeria shall submit its application to the Director, Trade and Exchange Department with the following documents, among others.
