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The Central Bank of Nigeria (CBN) has cautioned International Money Transfer Operators (IMTOs) operating within the country against selling foreign exchange (FX) above the approved rates.
The approved rates are the Nigerian Autonomous Foreign Exchange (NAFEX) rates plus or minus 2.5 per cent. The warning addresses recent violations and breaches by some IMTOs and outlines potential sanctions for further non-compliance.
In a circular with reference number, TED/FEM/PUB/PC/001/009’ dated September 13, 2023, the apex bank noted several infractions following routine checks on the activities of money transfer operators.
The CBN observed that arbitrary rate quotes outside the permissible range are a violation of the extant regulations.
“However, in the course of routine checks by the Central Bank of Nigeria, it was observed that some IMTOs were operating and acting in breach of the referenced circular. These actions included arbitrary rate quotes outside of permissible range and other sharp practices, in violation of extant regulations. Such deviations from the rules compromise the stability of Nigeria’s financial markets and have the potential to introduce unfair practices that may disadvantage consumers,” it said.
It stressed that it would sanction any IMTO that flouts its regulation, including “suspension from engaging in international money transfer operations”.
“The potential loss of their operating license. Going forward, any IMTO in breach of this specific regulation would face sanctions, including but not limited to being compelled to sell their proceeds to the Central Bank of Nigeria, suspension from operations and loss of operating license,” it added.
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