Registered BDCs To Become Money Transfer Agents
The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele Friday said registered Bureau de Change (BDC) operators in the country will be allowed to become agents for the Western Union and other money transfer companies for inward and outbound money transfers services.
Mr Emefiele made this known at the launch of the Outbound Money Transfer Services by the Western Union Money Transfer (WUMT) in partnership with First Bank Nigeria.
With the service, customers don’t need to go to BDCs or banks to buy foreign currency to transfer it abroad, according to the CBN Governor.
“What we are saying is if you have need to transfer money abroad it is just to walk in to any Western Union branches nationwide and pay local naira value for the person abroad.
“We have already discussed and agreed with the Western Union about the need to also work with BDCs operators that are well structured. Conditions will be given under which BDCs will qualify to become the WU agents,’’ he added.
Emefiele said the CBN will provide up to N10 million to WU or Money Gram as guarantee for transactions that are being done by the BDCs operators to ensure that they themselves feel secure to carry out these transactions without any problems.
He explained that the N10 million guarantee will be taken out of their N35 million cautionary deposits with CBN.
“We will ensure that the guarantees are not call and that is why we are going to put very stringent qualifying criteria that will make you think before you begin to be regarded as an agent,” the CBN governor stated.
The transactions allowed for the outbound transfers include the maintenance for allowance for children abroad, maintenance allowance for aged parents abroad, personal home remittances within allowable limits, cash gift within allowable limits, and other person to person remittances.
Regional vice president Africa, Western Union Company, Mrs Aida Diarra, said the company was proud to be the first in the start of the outbound transfers in Nigeria.
Executive Director, First Bank, Mr. Akin Fanimokun, whose bank partnered in the launch, said the bank will continue to provide quality services delivery to its numerous customers.