RegAlert

Rule · CBN · 22 Aug 2016 · TED/FEM/FPC/GEN/01/008

Re: Transactions in "Free Funds" by Authorised Dealers

fx
disclosure
enforcement

The Central Bank of Nigeria has observed some Authorized Dealers engaging in transactions involving "free funds," which is against existing circulars (TED/AD/29/2004). These dealings require appropriate documentation and disclosure to regulatory authorities, and any violation of these requirements is a breach of extant regulations. The CBN reiterates that Authorized Dealers must not sell foreign exchange without the required documents or disclose them to relevant bodies. Only eligible transactions should be conducted, ensuring compliance with existing laws and regulations.

NigeriaCentral Bank of Nigeria

L BANK OF NIGERIA l Business District M.B. 0187, Garki, Abuja, FCT TRADE AND EXCHANGE DEPARTMENT 09 46237804 09 46237802 E-mail address:ted@cbn.gov.ng TED/FEM/FPC/GEN/01/008 August 22, 2016 TO: ALL AUTHORISED DEALERS AND GENERAL PUBLIC RE: TRANSACTIONS IN "FREE FUNDS" BY AUTHORISED DEALERS The Central Bank of Nigeria has noticed that some Authorised Dealers have continued to buy and sell foreign exchange referred to as "free funds" despite the provision of the circular referenced TED/AD/29/2004 dated March 4, 2004 on the subject.

Against the background, Authorised Dealers are to note that dealing in foreign exchange without appropriate documentation which includes relevant entries, blotters, physical documents and non-disclosure to the Regulatory Authorities is a breach of extant regulations.

The CBN therefore reiterates that, as provided in the laws and regulations governing dealings in foreign exchange, Authorised Dealers shall NOT sell foreign exchange without appropriate documentation and disclosure to the Regulatory Authorities irrespective of the source of such funds.

Accordingly, Authorised Dealers shall deal in eligible transactions only and not to engage in any foreign exchange transactions on terms inconsistent with the extant laws and/or regulations.

Please ensure compliance accordingly.

EXCHANGE DEPARTMENT

Note from RegAlert. AI assistants can read this document in full, and search 70,000+ more, through the RegAlert MCP connector (https://mcp.regalert.today/mcp). Free with an account. How to connect ChatGPT, Claude or Cursor.

Similar documents from other regulators

More like this from CBN

We email you every new CBN publication the day it's published.

Source: Central Bank of Nigeria — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works

In RegAlert: added · updated

FX rules change often. Get an email the day any regulator we track changes its foreign-exchange rules.