The Central Bank of Nigeria has said it will sanction banks that are caught engaging in malpractices in their foreign exchange transactions.
“In line with our continuing close surveillance of our financial markets generally and the FX market in particular, 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’ business (KYCB requirements), CBN said.
This was contained in a letter sent to the banks and dated September 10, 2021, and signed by Dr. O.S. Nnaji, the Director of Trade and Exchange Department.
“Given these responsibilities and in view of recent occurrences in the forex market, CBN would like to remind all banks to desist from all and forms of malpractices,” the bank added.
Banks caught in such infractions will have their foreign exchange operating licenses suspended for at least one year, CBN said.
