Desist From Forex Malpractices or Face Suspension – CBN Warns Banks

The Central Bank of Nigeria (CBN) has once again warned banks to desist from involving themselves in any form of foreign exchange (FX) malpractice or risk their FX operational licence being suspended for at least one year.

The Nigerian apex bank issued the warning in a circular signed by director of trade and exchange department, O.S. Nnaji, on Friday.

CBN, had months ago announced that it would discontinue sales of FX to Bureaux De Change operators (BDCs).

In the new circular, the CBN implored banks to know their customers, as well as the kind of businesses they are involved in.

The circular reads: “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 (KYC requirements) but also know their customers’ business KYCB requirements,”

Also Read: Domiciliary: No Plan To Convert Currencies — CBN

“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.”