CBN warns banks to ensure due diligence over FX transactions

CBN warns banks to ensure due diligence over FX transactions

The Central Bank of Nigeria (CBN) has warned Deposit Money Banks (DMBs) to always observe due diligence and desist from all forms of malpractices in foreign exchange (FX) transactions.

The apex bank gave the warning in a letter on Saturday, September 11, by Ozoemena Nnaji, the CBN Director of Trade and Exchange Department, addressed to the DMBs.

Nnaji urged the banks to, not only ensure to know their customers; but also to know their customers ‘ businesses.

She said the directive was necessitated by recent occurrences in the FX market.

“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 licenses of any bank or banks that are found culpable with ongoing investigations will be suspended for at least one year,” the director said.

She urged all the DMBs concerned to take note and also ensure compliance.

Meanwhile, on Friday, September 10, a Rivers States High Court declared the suspension of Uche Secondus as a member of the Peoples Democratic Party (PDP) by the Ward 5 executive committee of the party in Ikuru town in Andoni local council of the state, as valid, stating that it still subsists.

The ruling also mandated a permanent injunction restraining Secondus from parading himself as the national chairman of the party.

Justice Okogbule Gbasam of the Degema Judicial Division vacation court sitting in Port Harcourt ratified the suspension of Secondus.

This was while delivering judgment in suit No: PHC/2183/CS/2021 filed by Ibeawuchi Ernest Alex; Dennis Nna Amadi; Emmanuel Stephen; and Umezirike Onucha (claimants) against Uche Secondus (1st defendant) as well as the PDP (2nd defendant).

After careful review of the submissions made by the counsels of parties in the suit by Justice Gbasam; he arrived at the conclusion that evidence presented by the claimants before the court clearly showed that Secondus was suspended; by the Ward 5 executive committee of the PDP in Ikuru town for anti-party activities on August 8, 2021.

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He further explained that the claimants also provided evidence that the state chapter of PDP confirmed the suspension of Secondus on August 11; with a subsequent letter written to the Board of Trustee of the party on August 13.


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