CBN Threatens To Suspend FX Operating License Of Banks Involved In Forex Malpartice

The Central Bank of Nigeria (CBN) has stated that banks that are involved in forex malpractice would have their forex operation license suspended for at least one year.

The was disclosed in a circular dated September 10, 2021 titled, “Observations of due diligence in the processing of foreign exchange translations” signed by Dr. O.S.  NNAJI, Director of Trade and Exchange Department of the CBN.

The CBN said, “In line with the continuing close surveillance of our financial market in general and the FX market in particular, the CBN wishes to remind all banks that it is their responsibility to not only Know their customers but know their customer business. 

“Given these responsibilities and in view of recent occurrences in the market, the CBN would like to remind banks to desist from all and any form of forex malpractice. 

“We wish to reiterate that the FX operations licence of any bank or banks that are found culpable with the ongoing investigation would be suspended at least for one year.“

In case you missed it 

• The Central Bank of Nigeria (CBN) has announced that it will inject extra dollars into approved banks in order to increase the economy’s foreign exchange supply.
• The CBN had earlier directed Deposit Money Banks (DMBs) to set up teller points in designated branches for the sale of foreign exchange to meet legitimate forex requests of their customers.
• In complying with the CBN’s directive, deposit money banks in the country swiftly moved to set up teller points within their banking halls to attend to the forex needs of customers.
• The CBN has gone further to direct all commercial banks to publish on their websites, the names and Bank Verification Numbers (BVN) of customers who participate in fraudulent and unscrupulous tactics to obtain foreign exchange from banks.