CBN bans Banks and Fintechs from International Money Transfer Services

The Central Bank of Nigeria (CBN) has precluded banks and budgetary innovation companies (fintechs) from advertising worldwide cash exchange administrations.

This improvement is sketched out within the reexamined rules for the operations of Universal Cash Exchange Administrators (IMTOs), authoritatively discharged on January 31, 2024.

Agreeing to the archive, all banks are presently denied from straightforwardly working Universal Cash Exchange administrations but may serve as specialists. Additionally, Monetary Innovation Companies are banned from getting endorsement for IMTO administrations.

The rules moreover stipulate that the arrangements of the Banks and Other Monetary Educate Act (BOFIA) 2020, which limit the work of certain people in banks, should apply to IMTOs. This incorporates people in administration positions, shareholders, and officers of a bank.

This order marks a critical development of past controls. Whereas the 2014 rules as it were precluded store cash banks from advertising such administrations, the upgraded rules presently amplify the boycott to fintech companies as well.

The move underscores the CBN’s endeavors to fix administrative oversight and guarantee compliance with keeping money controls, reflecting its commitment to keeping up steadiness and judgment within the country’s monetary framework.