CBN Releases Bans to Banks ,Fintech in Fresh Update(Read Here)

CBN Bans Banks, Fintechs From International Money Transfers, Increases Application Fee

The Central Bank of Nigeria (CBN) has issued a directive that banks and financial technology companies (fintechs) are no longer permitted to engage in international money transfer services.

This change comes alongside a dramatic increase in the application fee for licensing International Money Transfer Operators (IMTOs) by 1,900%.

The apex bank’s decision was disclosed in a CBN document dated Wednesday, January 31, 2024, which also outlined the revised guidelines for IMTO operations.

“All banks are prohibited from operating International Money Transfer services but can act as agents,” the document stated.

Additionally, it specified that fintech companies are ineligible for IMTO approval.

The guidelines further extend employment prohibitions, as outlined in the Bank and Other Financial Institutions Act (BOFIA) 2020, to IMTOs.

The revision expands on the 2014 guidelines, which only restricted deposit money banks from these services, to now include fintechs.

Furthermore, the CBN has escalated the application fee for IMTO licensing from the previous N500,000 to N10 million, marking a significant increase over nearly ten years.

Click here to continue reading on Leadership