The Central Bank of Nigeria (CBN) has warned Commercial Banks, especially the Deposit Money Banks to always observe due diligence and desist from all forms of malpractices in foreign exchange transactions.
The warning was given by the apex bank in a letter by Ozoemena Nnaji, Director of Trade and Exchange Department, addressed to the DMBs.
I the letter, Nnaji urged the banks to ensure to know their customers and also to know their customers’ businesses, adding that 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 operation 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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