GUIDELINES ON INTERNATIONAL MONEY TRANSFER SERVICES IN NIGERIA
Guideline · Trade
Guidelines govern the operations of international money transfer operators in Nigeria, including licensing and compliance requirements. They target licensed operators, remittance senders, and banks acting as agents. This facilitates safe remittances and prevents money laundering.
GUIDELINES ON INTERNATIONAL MONEY TRANSFER SERVICES IN NIGERIA
What Is This Policy?
CBN guidelines governing the operations of international money transfer operators (IMTOs) in Nigeria, including licensing, transaction limits, compliance requirements, and the protection of remittance recipients.
Who Does It Target?
Licensed international money transfer operators (Western Union, MoneyGram, etc.) Nigerian diaspora sending remittances home Banks acting as payment agents for IMTOs CBN as the licensing and oversight authority
What Does It Aim to Achieve?
Facilitate safe, cheap, and efficient international remittances to Nigeria while preventing money laundering and ensuring compliance with foreign exchange regulations.
Key Features
IMTO Licensing: IMTOs must be licensed by CBN before operating in Nigeria. Agent Network: IMTOs may pay out remittances through licensed banks and other agents. Transaction Limits: CBN sets limits on individual transfer amounts to manage foreign exchange flows. AML Compliance: IMTOs must implement anti-money laundering controls and report suspicious transactions.
Current Status
Rollout Stage: Active Coverage: Nationwide international remittance market Beneficiaries: Nigerian diaspora; remittance recipients; economy Funding: IMTO fees and spreads
How to Access
IMTOs must hold a valid CBN IMTO licence Recipients must present valid ID when collecting remittances above prescribed thresholds Remittances are paid in naira through licensed agents Application method: IMTO licensing: apply to CBN at https://www.cbn.gov.ng
Important Terms
Unlicensed international money transfer services are illegal Foreign currency remittances must be converted to naira at authorised rates Suspicious remittance patterns must be reported to NFIU
Impact & Metrics
Nigeria receives approximately $20 billion annually in diaspora remittances, making it one of Africa's top remittance recipients.
Official Resources
Website: https://www.cbn.gov.ng Contact: Central Bank of Nigeria (CBN)
Legal Framework
Issued under the regulatory powers of the Central Bank of Nigeria (CBN) pursuant to the CBN Act 2007 and the Banks and Other Financial Institutions Act (BOFIA) 2020. Operates alongside the Money Laundering (Prevention and Prohibition) Act 2022, the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, and the Cybercrime (Prohibition, Prevention, etc.) Act 2015. Aligns with FATF Recommendations on money transfer operator regulation.