Regulatory Alerts2013-11-14 | TED/FEM/FPC/GEN/01/016Re: Transactions in "Free Funds" by Authorised Dealers
The Central Bank of Nigeria's Trade and Exchange Department has reminded Authorised Dealers that engaging in transactions involving "free funds" without appropriate documentation remains unlawful according to the 2004 circular, TED/AD/29/2004. All dealings in foreign exchange should be backed by necessary documentation and reported to Regulatory Authorities regardless of the origin of such funds. Violations of these provisions will face appropriate sanctions.
.B. 0187, Garki, Abuja. FCT TRADE AND EXCHANGE DEPARTMENT 09 46237804 09 46237802 E-mail address:ted@cenbank.org TED/FEM/FPC/GEN/01/016 November 14, 2013 TO: ALL AUTHORISED DEALERS AND GENERAL PUBLIC RE: TRANSACTIONS IN "FREE FUNDS" BY AUTHORIZED DEALERS Further to the circular Ref: TED/AD/29/2004 of March 4, 2004 on the above subject, we observe that some Authorized Dealers have continued to deal in "free funds" without adequate documentation contrary to the provisions of extant regulation.
For the avoidance of doubt, the circular under reference is still in force and all dealings in foreign exchange MUST be supported with appropriate documentation and returns rendered to Regulatory Authorities irrespective of the source of such funds.
Consequently, Authorised Dealers are reminded that unrestrained dealing in foreign exchange in the name of "free funds" is inconsistent with prevailing laws/regulations and shall be sanctioned appropriately.
Please ensure compliance.
ADE & EXCHANGE DEPARTMENT