Regulatory Alerts2021-09-10 | TED/FEM/PUB/FPC/01/007Observance of Due Diligence in the Processing of Foreign Exchange Transactions
The Central Bank of Nigeria (CBN) reminds banks of their responsibility to know their customers and their customers' businesses. The CBN warns banks to refrain from any form of foreign exchange (FX) malpractices and reiterates that banks found culpable in ongoing investigations will have their FX operating licenses suspended for at least one year. This letter emphasizes the importance of due diligence and compliance in the processing of FX transactions by banks in Nigeria.
CENTRAL BANK OF NIGERIA Corporate Head Office Central Business District P.M.B. 0187, Garki, Abuja, FCT TRADE AND EXCHANGE DEPARTMENT 09 46237831 09 46237809 E-mail address: ted@cbn.gov.ng TED/FEM/PUB/FPC/01/007 September 10, 2021 LETTER TO ALL BANKS OBSERVANCE OF DUE DILIGENCE IN THE PROCESSING OF FOREIGN EXCHANGE TRANSACTIONS In line with our continuing close surveillance of our financial markets in general 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).
Given these responsibilities and in view of recent occurrences in the market, the CBN would like to remind banks to desist from all and any forms of FX malpractices.
We wish to reiterate that the FX operating license of any bank or banks that are found culpable with ongoing investigations would be suspended for at least one year.
Please note and ensure compliance.
DR O.S. NNAJI DIRECTOR TRADE AND EXCHANGE DEPARTMENT