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The Central Bank of Nigeria has warned Deposit Money Banks to always observe due diligence and desist from all forms of malpractices in foreign exchange transactions.
The apex bank ,who gave the warning in a letter by Ozoemena Nnaji, Director of Trade and Exchange Department,urged the banks to not only ensure they know their customers but also to know their customers’ businesses.
She said the directive was necessitated by recent occurrences in the FX market.
She said: “The CBN wishes to remind all banks that it is their responsibility to not only know their customers (KYC requirements) but also know their customers’ businesses (KYCB requirements).Given this responsibility, and in view of recent occurrences in the market, the CBN will like to remind banks to desist from all forms of FX malpractices.
“We wish to reiterate that FX operating licenses of any bank or banks that are found culpable with ongoing investigations will be suspended for at least one year.”
Meanwhile,the Central Bank of Nigeria (CBN) has denied a claim that it directed banks to convert all customers’ domiciliary accounts meant for dollar and other hard currency transactions into naira accounts.
In a statement ,Director, Corporate Communications, Osita Nwanisobi, the apex bank said a fake circular with a fake CBN logo curiously dated “13 September 2021” (next Monday), and purportedly issued by its Trade and Exchange Department directed that all Deposit Money Banks, International Money Transfer Operators (IMTOs) and members of the public are to convert domiciliary account holdings into naira.
“We wish to reiterate that the Bank has not contemplated, and will never contemplate, any such line of action. The speculation is a completely false narrative aimed at triggering panic in the foreign exchange market,” CBN said.
The apex bank recalled that it had assured that there was no plan to convert the foreign exchange in the domiciliary accounts of customers into Naira in order to check the alleged shortage of availability of the United States Dollar (USD).
“Operators of domiciliary accounts and other members of the banking public are therefore advised to completely disregard these fictitious documents and malicious rumours, and go about their legitimate foreign exchange transactions.”
The apex bank also warned corporate bodies and members of the public against the unauthorised use of the bank’s logo for any purpose, stating that the appropriate authorities have been notified and culprits will be sanctioned.
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