The Central Bank of Nigeria has warned Deposit Money Banks to always observe due diligence and desist from all forms of malpractices in foreign exchange transactions.
The apex bank gave the warning in a letter by Ozoemena Nnaji, Director of Trade and Exchange Department.
The letter was addressed to the DMBs.
Nnaji urged the banks to not only ensure they know their customers, but also to know their customers’ businesses.
She said the directive was necessitated by recent occurrences in the FX market.
She said: “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’ businesses (KYCB requirements).
“Given this responsibility , and in view of recent occurrences in the market, the CBN will like to remind banks to desist from all forms of FX malpractices.
“We wish to reiterate that FX operating licences of any bank or banks that are found culpable with ongoing investigations will be suspended for at least one year.”
The Director urged all the DMBs concerned to take note and ensure compliance.