Nigeria

Forex: CBN threatens to suspend erring banks’ licences

The Central Bank of Nigeria (CBN) as said that its staff in Jos Branch, on Tuesday averted what would have been another major fire disaster in the country.

The Central Bank of Nigeria (CBN) has threatened to suspend for at least one year, the foreign exchange operating licenses of banks that indulge malpractices in their dealings with customers.

CBN said this in a letter it sent to all banks operating in the country, on Friday.

The letter was signed by Dr O.S. Nnaji, Director, Trade and Exchange Department.

The letter read, “In line with our continuing close surveillance of our financial markets generally and the FX market, in particular, the CBN wishes to remind all banks that it is their responsibility to not only know their customers (KYC requirements) but also know their customers’ business (KYCB requirements).

“Given these responsibilities and in view of recent occurrences in the forex market, CBN would like to remind all banks to desist from all forms of malpractices.”

Newsmen on Sunday reported that Nigeria foreign exchange market has been in crisis since the central bank removed the bureau de change operators in the sale of forex.

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