The Central Bank of Nigeria (CBN) has banned banks and financial technology companies (fintechs)across the country, from offering international money transfer services.
The ban is contained in the revised guidelines for the operations of International Money Transfer Operators (IMTOs), officially released on January 31, 2024.
The document states that aall banks are now prohibited from directly operating International Money Transfer services but may serve as agents.
Similarly, Financial Technology Companies are barred from obtaining approval for IMTO services.
The guidelines also stipulate that the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020, which restrict the employment of certain persons in banks, shall apply to IMTOs. This includes individuals in management positions, shareholders, and officers of a bank.
This directive marks a significant expansion of previous regulations. While the 2014 guidelines only prohibited deposit money banks from offering such services, the updated rules now extend the ban to fintech companies as well.
The move underscores the CBN’s efforts to tighten regulatory oversight and ensure compliance with banking regulations, reflecting its commitment to maintaining stability and integrity in the country’s financial system.