CBN Raises ITMO Application Fee To N10 Million, Bars Banks, Fintechs From Service Provision

The Central Bank of Nigeria (CBN) has raised the application fee for the international money transfer operators (IMTO) license application from N500,000 to N10 million in the updated guidelines.

This increase, outlined in the revised guidelines for IMTO operations released on January 31, 2024, signifies a significant surge of about 1,900% over 10 years.

Additionally, the CBN has prohibited banks and financial technology companies (fintechs) from offering international money transfer services.

The document read, “ All banks are prohibited from operating International Money Transfer services but can act as agents.

“Also, Financial Technology Companies are not allowed to obtain approval for IMTO.

“The provisions of BOFIA 2020 on the prohibition of employment of certain persons in banks shall also apply to IMTOS.”

The apex bank also excludes individuals from the management of banks, shareholders, and officers of a bank.

In the previous guidelines issued in 2014, only deposit money banks were barred from offering international money transfer services. However, the CBN has expanded this prohibition to include fintechs.

Regarding the N10 million application fee, the document specifies that any IMTO wishing to operate in Nigeria must submit its application to the Director of the Trade and Exchange Department, along with various required documents.

“A non-refundable application fee of N10,000,000.00 (Ten Million Naira only) or such other amount that the Bank may specify from time to time, payable to the CBN through electronic transfer or bank draft.

“Approval to operate in other jurisdictions or agency agreement (for all IMTOs).

“Evidence of tax clearance and incorporation documents in Nigeria (for indigenous IMTOS) to include Memorandum and Articles of Association (Certified True Copy), of which the primary object clause shall indicate provision of money transfer services.”

Furthermore, there is an annual renewal requirement with a fee of N10 million Naira or any amount specified by the apex bank from time to time. This fee must be paid to the CBN through electronic transfer or bank draft by January 31 of each year.