CBN Directs MoneyGram, Western Union, others to deposit diaspora remittances into beneficiary’s accounts

International Money Transfer Operators have been directed by the Central Bank of Nigeria to deposit diaspora remittances into the accounts of the beneficiaries, while banks will either pay in cash or transfers.

The bank disclosed this in a circular dated December 2

Recall that the CBN had on Monday, made a sudden policy reversal on diaspora remittances which gave the naira edge over the dollar from trading at N500 to N485 per dollar.

The development comes amidst the country’s dollar scarcity which is hitting badly on the economy.

To deepen the new rule on remittances, the CBN said, “All IMTO’s must ensure that all funds in favour of beneficiaries/recipients in Nigeria be deposited into the Agent Banks’ correspondent account.

“Agent Banks (Deposit Money Banks) in Nigeria will be responsible for final payment to beneficiaries/recipients either in foreign currency cash (USD) or into the beneficiaries’/recipients’ domiciliary account in Nigeria.”

The CBN added that the mode of payment by Deposit Money Banks must either be in cash or transfer.

The bank also announced on Monday that diaspora remittances from 35 approved IMTOs including Western Union, UAE Exchange Centre LLC, MoneyGram, WorldRemit and RANS-Fast Remittance, among others will be paid in dollars to recipients or beneficiaries.

The move was part of the lenders effort to liberalize, simplify and improve the receipt and administration of diaspora remittances into Nigeria.

CBN also said the changes were necessary to deepen the foreign exchange market, provide more liquidity and create more transparency in the administration of Diaspora Remittances into Nigeria.