The apex bank and regulator of the financial sector in Nigeria, the Central Bank of Nigeria (“CBN”), on 10th July 2023 released an official list of licensed International Money Transfer Operators (“IMTOs”) in the country. This comprehensive list is a constructive notice to the general transacting public advising them on the companies that have been duly licensed by the CBN to undertake or facilitate the transfer or remittance of funds from overseas to Nigeria.
The business of fund remittance from a foreign country to Nigeria or any form of cross-border payment services, whether from individual or corporate sender to an individual or corporate recipient or vice versa, for whatever purposes and through whatever payment technology channels, is an IMTO service that can only be rendered by companies duly incorporated in Nigeria and licensed by the CBN. Read more on HOW TO GET AN IMTO LICENCE IN NIGERIA
An ITMO has permissible and prohibited business activities in accordance with the guidelines of the CBN. The IMTO licence allows its holders to do any or all of the following:
(a) To accept monies for the purpose of transmitting them to persons resident in Nigeria or another country;
(b) To provide cross-border personal money transfer services, such as, money transfer services towards family maintenance and money transfer services favoring foreign tourists visiting Nigeria shall be allowed under this arrangement; and
(c) To provide money transfer services that target individual customers mainly and the transactions shall be on “person to person transfer” basis to safeguard against corporate customers that might structure their transactions into smaller amounts to circumvent the statutory reporting threshold.
Please note that the required share capital for an IMTO company in Nigeria depends on the promoters of the business. The share capital is N2,000,000,000.00 (Two Billion Naira) where the licence is sought by a Nigerian company with local promoters. However, where a foreign payment company is seeking to apply for an IMTO in Nigeria for the purpose of expanding its cross-border payment services to Nigeria, then the business must be incorporated in Nigeria with a share capital of, at least, N50,000.000 (Fifty Million Naira) or its equivalent, plus the guarantee of the parent company who must show that it has been licensed in any foreign country to do cross-border payment services.
YOU CAN READ MORE BELOW ON HOW TO GET IMTO LICENCE IN NIGERIA
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About KORIAT & CO.
We are a commercial law firm in Nigeria with network of lawyers and consultants in Ghana, Kenya and Rwanda.
We assist local and foreign clients to process company registration and business licences in Nigeria, Ghana, Kenya and Rwanda. We also provide legal advisory and support services to promoters and registered businesses.
The above article is not legal advice and does not automatically make its readers our clients unless they have engaged our services to represent them in any way.
Please contact Koriat & Co. through admin@koriatlaw.com or 09067842241 if you require additional information or assistance in respect of the subject covered in the above article.
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