The Director, Commerce and Alternate Division of the CBN, OS Nnaji, on Friday, disclosed this in a letter to all banks within the nation.
Prompted by experiences of sharp practices by some unscrupulous clients to avoid the brand new CBN coverage on the sale of foreign exchange for abroad private and enterprise journey, the financial institution on August 31, directed all industrial banks to publish on their web sites the names and Financial institution Verification Numbers of shoppers who fraudulently get hold of international trade from banks.
Mr. Nnaji mentioned the punishment shall be for anybody discovered on the finish of the continuing investigations to be culpable of infractions involving international trade malpractices.
Within the letter titled “Observance of Due Diligence Within the Processing of International Alternate Transactions,” the CBN identified the significance of the banks taking duty for not solely realizing their clients but in addition realizing the sort of companies their clients are concerned in.
“According to the persevering with shut surveillance of our international markets basically and the international trade market specifically, the CBN needs to remind all banks that it’s their duty to not solely know their clients (KYC necessities) but in addition know their clients’ enterprise KYCB necessities,” the letter mentioned.
“Given these tasks, and in view of latest occurrences out there, the CBN want to remind us to desist from all and any types of FX malpractices.
“We want to reiterate that the FX working license of any financial institution or banks which might be discovered culpable with ongoing investigations can be suspended for a minimum of one yr.”
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