The Central Bank of Nigeria (CBN) has pegged the share capital of international money transfer operation at $1.0 million and indigenous international money transfer at N2 billion.
This was contained in the guidelines on international money transfer services in Nigeria released by the CBN to accommodate both inbound and outbound services.
The objective of the guidelines are to provide minimum standards and requirements for international money transfer services operations in Nigeria, specify delivery channels for offering international money transfer services (inbound/outbound) in a cost effective manner, and to provide enabling environment for international money transfer services in the Nigerian economy.
The guidelines state that an indigenous money transfer services operator (MTSO) who provides regional and/or global money transfer service and who wishes to engage a foreign technical partner shall obtain the prior approval of the CBN. The technical partner shall be a registered entity, licensed in his home country to carry on international money transfer services.
According to the CBN, the technical partner shall have a minimum net worth of US$10.0 million, as contained in his current audited financial statement, or as may be determined by the CBN from time to time.
Deposit money banks (DMBs) are by the guideline prohibited from operating as international money transfer service operators, but can act as agents except with the express approval of the CBN.
The permissible activities of international money transfer operators shall include allowable inbound and outbound international money transfer transactions.
Allowable limit of the outbound money transfer per transaction, according to the apex bank, shall be $2,000 or its equivalent, subject to periodic review by the CBN.
