Regulatory Alerts2012-07-05 | TED.FEM.FPC.GEN.01.016.2012Utilization of Funds Purchased From CBN (WDAS) Window
The Trade & Exchange Department of CENBank has issued guidelines to improve transparency and efficiency in utilizing WDAS funds. Effective from July 9th, 2012, these funds must be utilized within two working days. Unutilized funds will be refunded to the CBN with interest or repurchased at the lower of the prevailing rate or initial purchase rate. Authorized Dealers failing to comply may face sanctions such as fund refunds with a 5% LIBOR interest, monetary fines according to BOFIA 1991, and other appropriate penalties. This circular supersedes previous provisions on the subject dated December 29th, 2010.
TRADE & EXCHANGE DEPARTMENT 09 46237804 09 46237809 E-mail address:ted@cenbank.org Tel .........
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TED/FEM/FPC/GEN/01/016 July 05, 2012 To: ALL AUTHORISED DEALERS UTILIZATION OF FUNDS PURCHASED FROM CBN (WDAS) WINDOW In order to enhance transparency and efficiency in the use of WDAS funds, Authorised Dealers are hereby informed of the following guidelines for noting and compliance.
With effect from Monday, July 09, 2012 funds sourced from the WDAS shall be utilized within two (2) working days.
Any unutilized funds after the two working days from the date of settlement shall be refunded to the CBN for repurchase at the prevailing rate or the rate the funds were purchased whichever is lower.
Authorized Dealers are required to ensure compliance failing which the following sanctions shall apply: a. The refund of the amount to the CBN with interest at LIBOR+5%; b. Payment of monetary fine in accordance with the provisions of BOFIA 1991 (as amended); and c. Any other appropriate penalty.
This circular supersedes the provisions of paragraph 13 of the one Ref No.
FMD/FED/CIR/GEN/01/082/10 dated December 29, 2010 on the subject.
BATARI MUSA DIRECTOR TRADE AND EXCHANGE DEPARTMENT