The Central Bank of Nigeria (CBN) has banned banks and financial technology companies (fintechs) from operating International Money Transfer Services (IMTS).
The apex bank announced this in revised guidelines for IMTOs, which also increased the application fee for IMTO licenses from N500,000 to N10 million.
The guidelines prohibit banks from operating IMTS but allow them to act as agents. Financial technology companies are not permitted to obtain approval for IMTO.
The minimum share capital for foreign IMTOs is set at $1 million, while local IMTOs must meet an equivalent amount in naira.
The CBN also removed the allowable limit of exchange rates quoted by IMTOs.
The revised guidelines aim to promote transparency and ensure compliance with regulations in the foreign exchange market.
Peoplesmind
