HOW TO GET AN INTERNATIONAL MONEY TRANSFER SERVICE LICENSE IN NIGERIA
The incredibly quick transfer of money around the world is one thing that fintech has made possible to the point where it appears almost casual.
HOW TO GET AN INTERNATONAL MONEY TRANSFER SERVICE LICENSE IN NIGERIA
According to the 2014 Guidelines for the Operation of International Money Transfer Services in Nigeria (the "IMTO Guidelines"), companies wishing to offer International Money Transfer Operator (IMTO) services in Nigeria must first get a licence from the Central Bank of Nigeria (CBN).
The incredibly quick transfer of money around the world is one thing that fintech has made possible to the point where it appears almost casual. International remittances and transfers have advanced significantly from the days of laborious Due Diligence inspections and money transactions that frequently took up to a week.
IMTOs are permitted to receive funds for the purpose of sending them to individuals who reside in Nigeria or another nation. They may also provide cross-border transfer services for private needs, such as transfers of funds for family support and transfers of funds for foreign visitors to Nigeria.
IMTOs cannot, however, accept deposits or provide money lending services (as there are separate licencing requirements for these services). For settlement purposes, they are also not permitted to purchase foreign currency on the domestic foreign exchange market.
REQUIREMENTS FOR IMTO LICENCE IN NIGERIA
The office of the Director, Trade & Exchange Department, Central Bank of Nigeria, Abuja, receives applications for licences to operate international money transfer services. Without a valid licence from the CBN, no individual or organisation may offer services for international money transfers.
The following documents must be included with the applications:
Board of director’s approval to offer International money transfer services.
Copy of the applicant’s certificate of incorporation
Memorandum & Articles of Association (certified copy), of which the primary object clause shall indicate provision of Money Transfer Services.
Shareholding structure of the Company
Forms C02 (Return on Allotment of shares) and C07 (Particulars of Directors)
Profiles of the Board and Management of the Company to include: CVs, functional contact e-mails and telephone numbers, ownership, governance and management structure;
Organogram of the company
Business Plan, to include:
Nature of the Business
Features of the scheme
Internal control systems and monitoring procedures
Security features that will be put in place
3 years Financial projections/Market analysis for the Company
Transaction and other charges that will be borne by customers
Profit-sharing agreement among the parties
Diagrammatic illustration of transaction flows
Consumer Protection and Dispute Resolution Mechanism
Information Technology Policy of the Company including:
Backup and Restore Policy
Network Security Policy
Confidential Data Policy
Third-Party Connection Policy
Incidence Response Policy
Physical Security Policy
Enterprise Risk Management Framework
Contingency and Disaster Recovery Plan (business continuity plan)
Draft agreements with the participating parties
Tax Clearance Certificate for three (3) years
Project Deployment Plan (time, location, operation, etc.
Credit reports from a licensed credit bureau for the shareholders and key officers of the money transfer services operator;
Any other information as may be required by the CBN from time to time
A non-refundable application fee of N500,000 (Five Hundred Thousand Naira) or such other amount that the Bank may specify from time to time, payable to the “Central Bank of Nigeria” by electronic transfer.
Evidence of meeting the minimum paid-up share capital of:
N2,000,000,000 (Two Billion Naira) for Nigerian companies; and
N50,000,000 (Fifty Million Naira) or its equivalent for Foreign companies, plus the guarantee of the parent company
Presence in at least seven (7) different countries.
NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact firstname.lastname@example.org
WRITTEN BY CHAMAN LAW FIRM TEAM
TEL: 08065553671, 08024230080