CBN issues fresh directives on foreign currency payment of diaspora remittance

The Central Bank of Nigeria CBN) has issued fresh directives to International Money Transfer Operators (IMTOs) on foreign currency payment in cash to beneficiaries of diaspora remittances. The fresh directives follow the new rules unveiled by the Apex bank on Monday which allow beneficiaries of diaspora remittances to collect the proceeds as cash in foreign currency.

Announcing the fresh directives to banks and IMTOs, Mr. O. Nnaji, Director, Trade and Exchange Department, CBN, in a circular titled, “Re: Amendment to Procedures for receipt of Diaspora Remittances”, said: “Further to the Circular Ref. No. TED/FEM/FPC/GEN/01/011 of November 30. 2020. on the above subject, we wish to reiterate and clarify to All International Money Transfer Operators (IMTO) the following; ‘IMTO’s must ensure that all funds in favour of beneficiaries/recipients in Nigeria be deposited into the Agent Banks‘ correspondent account.

“Agent Banks (Deposit Money Banks) in Nigeria will be responsible for all payment to beneficiaries/recipients either in foreign currency cash (USD) or into the benehciaries’/recipients’ domiciliary account in Nigeria. ‘The mode (if payment either in cash or transfer is at the sole discretion of the beneficiaries/recipients. “Please ensure strict compliance and be guided accordingly.”