Forex: CBN instructs banks to name and shame defaulters

The Central Bank of Nigeria (CBN) has mandated all banks to name and shame defaulters of its foreign exchange policy by publishing their names and Bank Verification Number (BVN).

|In a circular published on the regulator’s website on Tuesday, the CBN claimed the defaulters of the policy are using fake visas and cancelling air tickets after purchase of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA).

The memo, which was signed by Director, Banking Supervision Department, Haruna Mustafa explained that this practice will affect the integrity and stability of the forex market.

“The CBN has received and noted with concern reports of sharp practises 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,” the statement read in part.

The CBN, therefore, directed all banks to publish on their website, the names, and BVN of defaulters.

“Consequently, further to the various measures already put in place, all banks are hereby directed 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.” (ChannelsTV)