CBN Directs Banks To Publish Names Of Forex Defaulters

By: Tobi
Published: September 2, 2021

The Central Bank of Nigeria (CBN) has mandated banks to publish the names of customers trying to obtain foreign exchange under false pretences.

The commercial banks have been directed to publish names and Bank Verification Number (BVN) of defaulting customers who presented fake travel documents or canceled their tickets and failed to return the purchased forex.

The apex bank gave the directive in a letter to all the banks yesterday. The letter was signed by its director, banking supervision department, Haruna Mustafa.

The apex bank said it received reports of sharp practices by some unscrupulous customers to circumvent the new CBN policy on the sale of forex for overseas personal and business travel.

The Banker Committee had earlier stated that some customers were attempting to get foreign exchange by applying for personal / business travel allowance with false documents.

The group managing director of Guaranty Trust Holding Company, Segun Agbaje, had at a Bankers Committee press conference, noted that some customers had applied for PTA and cancelled their flight tickets after the forex had been disbursed.

The CBN in its letter to the banks noted that “some of these unwholesome practices include the use of fake visas and cancellation of air tickets after purchase of PTA/BTA. This trend, if not curbed, portends risk to the integrity and stability of the forex market.

“This trend, if not curbed, portends risk to the integrity and stability of the forex market,” the Haruna said in the letter.

“Consequently, further to the various measures already put in place, all banks are hereby directed to publish on their websites the names and BVN of defaulting customers who present fake travel documents or cancel their tickets and fail to return the purchased PTA/BTA within two weeks as stipulated in the customer declaration form signed by them.” “Please be guided accordingly,” the apex bank said.

Meanwhile banks have begun to send mails to their customers on the requirements for obtaining forex for PTA/BTA, medical expenses, overseas school fees as well as other invisibles.

The value of the naira continued a downward slide selling at N526 to the dollar at the parallel market as

At the Investors’ and Exporters window which serves as the official window, the value of the naira is around N412 to the dollar as against N526 which it is selling on the streets. The value of the naira had begun a slow but steady decline in value over the last two weeks from around N500 which it was previously selling.

SOURCE; https://leadership.ng/cbn-directs-banks-to-publish-names-of-forex-defaulters/

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