Apex Bank Cracks Down on Under-Reporting and Unethical Practices
The Central Bank of Nigeria (CBN) has issued a stern warning to foreign exchange (FX) authorised dealers and their customers, cautioning them against providing inaccurate and misleading information regarding their transactions. The alert was communicated through a circular signed by Aliyu Ashiru, the Acting Director of the Financial Markets Department, on Monday.
Unification and “Willing Buyer, Willing Seller” Model: The directive follows the CBN’s announcement on June 14, 203, regarding the unification of all segments of the forex exchange market. The apex bank reintroduced the “willing buyer, willing seller” model at the investors and exporters (I&E) window. Operations in this window are guided by a circular dated April 21, 2017, and referenced FM/DIR/CIR/GEN/08/007.
The circular emphasized that all eligible transactions have the permission to access foreign exchange through this window.
Crackdown on Under-Reporting and Unethical Practices: Ashiru, in the recent circular, disclosed that investigations have uncovered instances of under-reporting of transaction rates and the dubious practice of “second cheques” in foreign exchange and fixed-income deals. The CBN warns that such activities will no longer be tolerated, and those found deliberately distorting transaction details will face sanctions.
The CBN reminded all authorised dealers that financial market transactions are permitted to be conducted on a ‘willing buyer, willing seller’ basis. The bank expects prices to be quoted and displayed transparently.
Commitment to a Transparent Financial Market: The CBN reasserted its commitment to a transparent and well-functioning financial market. It urged all stakeholders to conduct their legitimate business in compliance with the rules and guidelines published by the CBN. Deliberate attempts to manipulate the market through false transaction details will face strict consequences.
As the CBN intensifies efforts to curb unethical practices in forex transactions, stakeholders are reminded to uphold ethical standards for the integrity of the financial market.
By Findwhosabi News Team: Keeping You Informed, Every Step of the Way.