Connect with us

    Hi, what are you looking for?

    E-Financial

    CBN bans Banks and Fintechs from International Money Transfer Services

    CBN

    Central Bank of Nigeria (CBN) has prohibited banks and financial technology companies (fintechs) from offering international money transfer services.

    This development is outlined in the revised guidelines for the operations of International Money Transfer Operators (IMTOs), officially released on January 31, 2024.

    According to the document, all 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.

    Spread the love
    Click to comment

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    ad

    You May Also Like

    Oil and Gas

    Leading oil and gas experts in Nigeria have called for the full adoption of digital technologies to overcome the complex challenges facing the country’s...

    News

    Russia’s Finance Ministry announced on Wednesday, September 24, that it plans to raise the country’s value-added tax (VAT) to help finance the ongoing war...

    Tech

    Lagos State has reaffirmed its position as Africa’s leading technology and innovation hub following the successful hosting of the GITEX Nigeria Tech Expo, Future...

    News

    The United States has reversed its visa restrictions on Ghana after the West African country agreed to accept west Africans deported by the United...