Infractions affecting integrity, stability of Forex market in Nigeria, says CBN

*The Bankers’ Bank has mandated all banks in the country to publish on their Web sites, the names and Bank Verification Numbers of defaulters on their Web sites to forestall further irregularities in the foreign exchange market

Isola Moses | ConsumerConnect

Concerned by alleged violations of its Foreign Exchange (Forex) policy in the country’s economy, the Central Bank of Nigeria (CBN) has directed all banks in Nigeria to publish the names and Bank Verification Numbers (BVNs) of defaulters of the Forex policy henceforth.

ConsumerConnect reports Haruna Mustafa, Director of Banking Supervision Department, in a memo issued to the commercial banks Tuesday, August 31, 2021, stated the CBN noted the defaulters of the policy are those using “fake visas” and cancelling air tickets after purchase of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) respectively.

Naira notes and Dollar bills

The Bank, however, explained that this practice would negatively affect the integrity and stability of the Forex market.

The memo stated: “The CBN has received and noted with concern reports of sharp practices by some unscrupulous customers to circumvent the new CBN policy on the sale of forex for overseas personal and business travel.

“Some of these unwholesome practices include the use of fake visas and cancellation of air tickets after purchase of PTA/BTA.

“This trend, if not curbed, portends risk to the integrity and stability of the forex market.”

In view of these developments in the market, the CBN therefore, directed all banks to publish on their Web sites, the names, and BVN of defaulters to forestall further irregularities in the market.

“Consequently, further to the various measures already put in place, all banks are hereby directed to publish on their Web sites the names and BVN of defaulting customers who present fake travel documents or cancel their tickets and fail to return the purchased PTA/BTA within two (weeks) as stipulated in the customer declaration form signed by them,” stated the Bank.