International money transfers are prohibited by CBN for banks and fintechs

The prohibition is in line with the apex bank's determination to keep Nigeria's foreign exchange market stable. The International Money Transfer Services (IMTOs) cannot be conducted by banks or financial technology businesses, or Fintechs, according to a directive from the Central Bank of Nigeria (CBN).The ban was announced in a recent statement from the Central Bank of Nigeria (CBN), which is determined to keep the foreign exchange market stable and promote legitimate cash remittances.Play Unmute Complete Screen Because they were exempt from the 2014 guidelines that forbade deposit money banks from serving as IMTOs, Fintech companies operating in Nigeria previously held licenses to provide international money transfer services. By 2021, the apex bank had issued a list of approximately 47 approved IMTOs, some of which were Fintechs such as Flutterwave and Interswitch.