Central Bank of Nigeria (CBN) has unveiled revised guidelines for International Money Transfer Operators (IMTOs), establishing a minimum share capital requirement of $1 million for operators in the country.
The move is part of policy reforms aimed at bolstering the foreign exchange market in Nigeria and promoting fund remittance through legal channels.
The guidelines, officially released via the CBN‘s website and signed by Dr. Hassan Mahmud, the Director of the Trade & Exchange Department, highlight key criteria for IMTOs.
Applicants must adhere to the CBN’s regulations on anti-money laundering, combating the financing of terrorism, and countering proliferation financing of weapons of mass destruction.
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On required documents, the CBN revealed, “Any IMTO intending to operate in Nigeria shall submit its application to the Director, Trade and Exchange Department with the following documents: A non-refundable application fee of N10,000,000.00 or such other amount that the bank may specify from time to time; payable to the CBN through electronic transfer or bank draft.”
“Approval to operate in other jurisdictions or agency agreements (for all IMTOs). minimum share capital of $1million for foreign IMTOs and the equivalent for indigenous IMTOs,” it added.
Upon meeting these requirements, successful applicants receive an Approval-In-Principle (AIP) allowing them to proceed with opening a bank account and undertaking pre-operational processes.
The CBN further disclosed that, “An APl cannot be used by an IMTO to commence operations, and the AlP may be withdrawn if the IMTO does not meet the requirements stated above.”
To secure final approval, the Central Bank said “AlI IMTOs shall submit an application to the CBN for final approval not later than three months after obtaining APl subject to the fulfillment of the following requirements: Names of Authorized Dealer Bank(s) to serve as local agents and a copy of the agency agreement. Submission of a detailed business plan to the CBN, which includes the following: a. Nature of the business, Internal control systems and monitoring procedures, and more.”
To maintain their licenses, IMTOs must pay an annual renewal fee of N10 million or an amount specified by the bank, due by January 31st of each year. Renewals are expected to be completed within the first quarter, ensuring ongoing compliance with regulatory standards