By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-The Central Bank of Nigeria (CBN) on Friday announced it has released guidelines for the operations of inbound and outbound international money transfer services in the Nigeria.

This is contained in a circular with reference number TED/FEM/FPC/GEN/01/016 dated September 16 and signed by I.O. Gbadamosi, director, trade and exchange at the CBN.

The 18-page document contains licensing requirements and standard practices as regards which international money transfer services operators of both inbound and outbound transfers.

As part of the new guidelines, the CBN had pegged the maximum limit of outbound international money transfer at $2,000 per transaction.

Also, the Nigeria’s Central Bank prohibits banks in Nigeria from operating as international money transfer service operators, except with the express approval of the CBN.

International money transfer operators willing to operate in Nigeria shall make applications with a non-refundable fee of N500, 000 and have a minimum of $1.0 million in their home country.

For the indigenous they shall have a minimum paid up capital requirement of N2.0 billion.

The CBN affirmed that indigenous money transfer operators willing to partner with foreign firms and make global and or global money transfer services is expected to have a minimum net worth of $10 million as contained in its current audited accounts or as maybe determined by the CBN from time to time.

The CBN also prohibits Deposit Money Banks (DMBs) from operating as international money transfer service operators, but can act as agents except with the express approval of the CBN.

Part of the circular reads thus:“All international MTSOs in Nigeria shall comply with the provisions of the CBN’s ‘Anti-money Laundering and Combating the Financing of Terrorism in Banks and Other Financial Institutions Regulations, 2013’ and all other applicable laws and regulations.

“A money transfer services operator shall disclose to its customers details of applicable exchange rates, commissions, fees and any other amount that may be charged by the banks/ agents involved in a transfer.”