CBN Directs Banks To Publish Names, BVN Of Forex Defaulters

THE Central Bank of Nigeria (CBN) has  directed all banks to publish names of customers who disobey the rules on acquisition of forex on their websites.

The directive was given in a circular (BSD/DIR/PUB/LAB/14/059) dated August 30.

The apex bank said it had received and noted with concern reports of sharp practices by some unscrupulous customers to circumvent the new policy on the sale of forex for overseas personal and business travel.

According to the CBN, the dubious practices include the use of fake visas and cancellation of air tickets after purchase of PTA/BTA.

The Director, Banking Supervision Department of the CBN, Haruna B. Mustafa who signed the circular, said “this trend, if not curbed, portends risk to the integrity and stability of the forex market.”

For this threat to be checked, the CBN 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.”

Before the order by the apex bank, most banks had written to their customers, assuring them of their commitment to provide them with foreign exchange for their personal and business travel as well as payment for overseas education, medical and other eligible invisible transactions.

Prime Business Africa last week reported that one of the banks, Guarantee Trust Holding Company (GTCO) listed out rules for applying for forex for personal and business travel which it sent to its customers.

In the letter to its customers, GTCO said, “In line with the Central Bank of Nigeria’s policy to improve access to foreign exchange (FX) for legitimate transactions, we are committed to providing you with foreign exchange for your personal and business travel as well as payment for overseas education, medical and other eligible invisible transactions. As our valued customer, you have a role to play to ensure the success and integrity of the policy.”