Dev. Finance

CBN to banks: Publish names, BVN of forex fraudsters

Published

2 years ago

August 31, 2021

Naira to dollar dips to new low, sells for N550

The Central Bank of Nigeria (CBN) on Tuesday ordered all commercial banks to publish the names and Bank Verification Numbers (BVN) of customers who fraudulently apply for or obtain foreign exchange (forex).

The financial industry regulator, in a circular, said some unscrupulous customers have been found to be flouting the new forex guidelines.

According to the circular entitled “Publication of names of Defaulters of a CBN policy on sale of Forex for PTA/BTA”, some fraudulent customers present fake travel documents in order to collect Business Travel Allowance or Personal Travel Allowance.

The circular signed by CBN Director of Banking Supervision Department, Haruna Mustafa, accused some bank customers of canceling air tickets after purchasing PTA and BTA. The circular which was addressed to all banks stated, “The CBN has received and noted with concern reports of sharp practices 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.

“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.”