The Central Bank of Nigeria (CBN) has advised Deposit Money Banks (DMBs) on strict due diligence observance and at the same time desist from all forms of malpractices in foreign exchange (FX) transactions.
Ozoemena Nnaji, Director of Trade and Exchange Department, of the bank, issued the warning via a letter addressed to the DMBs, urging them to ensure they know their customers and their customers ‘ businesses.
She said the directive was necessitated by recent occurrences in the FX market. “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.