Regulator bars DMBs from int’l money transfer service

The Central Bank of Nigeria (CBN) has barred commercial banks from International Money Transfer Service operations. This policy was contained in a CBN circular to all Deposit Money Banks and stakeholders signed by its Director, Trade and Exchange, Mr. I. O. Gbadamosi. The circular however said banks can only act as money transfer agents with the express approval of the CBN.

The policy also pegged the maximum limit of outbound international money transfer at $2,000 per transaction. The circular which contains guidelines for the operations of inbound and outbound international money transfer services in the country, also itemised licensing requirements and standard practices, which international money transfer services operators are expected to comply with.

It also prohibits DMBs from operating as international money transfer service operators, except with the express approval of the CBN. “All international Money Transfer Service Operators in Nigeria shall comply with the provisions of the CBN’s ‘Anti-money Laundering and Combating the Financing of Terrorism in Banks and Other Financial Institutions Regulations, 2013’ and all other applicable laws and regulations. A money transfer services operator shall disclose to its customer’s details of applicable exchange rates, commissions, fees and any other amount that may be charged by the banks/ agents involved in a transfer,” it said.

It said operators should have a non-refundable fee of N500,000 and a minimum share capital of $1 million. “An indigenous money transfer service operator who provides regional and or global money transfer service and who wishes to engage a foreign technical partner shall get CBN’s approval. It must also have a minimum net worth of $10 million,” it said.