Desist from Foreign Exchange malpractices, CBN warns commercial banks




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

The apex gave the warning a letter by Ozoemena Nnaji, Director of Trade and Exchange Department, 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 the FX market.

“The CBN wishes to remind all banks that is their responsibility to not only know their customers (KYC requirements) but also know their customers’ businesses (KYCB requirements).

“Given this responsibility , and 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 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 note and ensure compliance.

(NAN)