Desist From Forex Malpractices, CBN Warns Commercial Banks

Desist From Forex Malpractices, CBN Warns Commercial Banks
CBN Governor – Godwin Emefiele

The Central Bank of Nigeria (CBN) has warned the Deposit Money Banks to always observe due diligence and desist from all forms of malpractices in foreign exchange transactions.

The regulator reportedly gave the warning in a letter by the Director of Trade and Exchange Department, Ozoemena Nnaji, and addressed to the DMBs.

Nnaji urged the banks to, not only ensure to know their customers, but also to know their customers ‘ businesses.’ She said the directive was necessitated by recent occurrences in the FX market.

Also Read: Verify Documents Presented By Customers For Forex, EFCC Tells Banks

“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 licences of any bank or banks that are found culpable with ongoing investigations will be suspended for at least one year,” the director said.

She urged all the DMBs concerned to take note and ensure compliance.

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