Regulatory Alerts2015-12-01 | TED.FEM.FPC.GEN.01.036Re: Liberalization on Unconfirmed Letters of Credit
This memo serves as a reminder to all Authorised Dealers that the previously issued circular restricting the use of unconfirmed letters of credit (LC) to inter-bank funds is still in effect. Violating this regulation, by using WDAS funds for unconfirmed LCs, will result in appropriate sanctions including suspension from the Foreign Exchange Market and/or financial penalties according to BOFIA as amended. Enforce compliance accordingly.
CENTRAL BANK OF NIGERIA Corporate Head Office Central Business District P.M.B. 0187, Garki, Abuja, FCT TRADE & EXCHANGE DEPARTMENT Tel: Fax: 09 4623781 09 46237809 E-mail address:ted@cenbank.org TED/FEM/FPC/GEN/01/036 November 24, 2010 TO: All Authorised Dealers RE: LIBERALIZATION ON UNCONFIRMED LETTERS OF CREDIT Further to the circular Ref: TED/FEM/FPC/GEN/01/088 of July 24, 2007, Authorised Dealers are hereby reminded that the provisions of the circular, particularly section two (2) which restricted the negotiation of the Unconfirmed LC to the use of inter-bank funds are still in force.
For the avoidance of doubt, the use of WDAS funds by Authorised Dealers for that purpose shall be sanctioned appropriately, including suspension from the Foreign Exchange Market and/or financial penalty, as provided for in the BOFIA as amended.
Please note and ensure compliance accordingly.
TRADE & EXCHANGE DEPARTMENT