Breaking: CBN Orders Banks to Publish Names, BVN of Forex Defaulters

Breaking: CBN Orders Banks to Publish Names, BVN of Forex Defaulters

  • The Central Bank of Nigeria (CBN) vowed that all Forex defaulters in the country would not go unpunished
  • This was contained in a circular signed by the director banking supervision department of the CBN, Haruna B. Mustafa, on Monday, August 30
  • Mustafa said that all banks have been directed to make public names of customers who violate the Forex rules

FCT, Abuja - The Central Bank of Nigeria (CBN) has directed all banks to publish names of customers who try to break the rules on Forex acquisition on their website.

The Nation reports that CBN on Monday, August 30, issued a circular (BSD/DIR/PUB/LAB/14/059) to all banks lamenting that it has received and noted with concern reports of sharp practises by some unscrupulous customers.

CBN says banks must publish names of Forex defaulters.
The Central Bank of Nigeria (CBN) has ordered banks to publish names, BVN of Forex defaulters. Credit: Chris J. Ratcliffe/Bloomberg.
Source: Getty Images gathered that the apex bank said the customers' practice was to circumvent the new CBN policy on the sale of forex for overseas personal and business travel.

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The CBN said that some of the unwholesome practices include the use of fake visas and cancellation of air tickets after the purchase of PTA/BTA.

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According to the report, the director banking supervision department of the CBN, Haruna B. Mustafa, who signed the circular, noted that “this trend, if not curbed, portends risk to the integrity and stability of the forex market.”

He ordered all banks to publish on their websites, 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.

It was gathered that prior to the order, most banks had written to their customers of their commitment to providing customers with foreign exchange for their personal and business travel as well as payment for overseas education, medical and other eligible invisible transactions.

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The rules that customers have to follow before they can access forex the bank said are:

  • FX shall be sold for Legitimate Travel Purpose Only.
  • Bank customers are required to provide a valid Nigerian passport and a valid visa to an international destination.
  • Only valid travel documents like tickets to an international destination outside of West Africa and Cameroon will be accepted.

CBN okays Fintech firm Bitt Inc as eNaira partner

TheCable also reports that the CBN said it has engaged Bitt Inc, a global fintech company, as the technical partner for its digital currency, eNaira.

Godwin Emefiele, CBN governor, disclosed the development in Abuja, on Monday, August 30.

Emefiele listed the benefits of the Central Bank Digital Currency (CBDC) to include increased cross-border trade, accelerated financial inclusion, cheaper, and faster remittances.

CBN reveals why crypto trading is an illegal transaction

Meanwhile, had previously reported that the CBN insisted that all cryptocurrency trading is an illegal forex transaction in the country.

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It was reported that the federal high court sitting in Abuja on Tuesday, August 17, granted the request of the CBN to freeze accounts belonging to some technology trading platforms offering local and foreign stocks.

The request was filed by former attorney-general of the federation and minister of justice, Michael Aondoaka, on behalf of the CBN.


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