CBN sanctions 12 banks for forex abuse

For failing to sell dollars to small entrepreneurs, not less than 12 commercial banks have been sanctioned by the Central Bank of Nigeria (CBN), as at Tuesday.

Confirming this, CBN Spokesman, Isaac Okorafor, told newsmen that only eight lenders – Access Bank Plc, Diamond Bank Plc, Fidelity Bank, Heritage Bank, Jaiz Bank, Sterling Bank, Unity Bank and Zenith Bank, sold forex to SMEs and were cleared by the regulator.

The rest did not get such clearance, owing to their own default in transacting some unapproved dealings with the forex at their possession.

He said the affected banks had been barred for refusing to sell forex to the SME actors after accessing over $300 million offered to them via the SMEs wholesale forex window, which CBN created in April 2017.

The banks were being monitored for a long period by officials of the apex bank for manipulating its foreign exchange forex policies before being reprimanded, Okoroafor stated.

Not only were some of them refusing to sell forex to genuine SMEs, which met CBN’s conditions, they also allegedly favoured some big-time companies with the dollars meant for the SMEs.

Okorafor, said the appropriate sanctions spelt out by the CBN Act and the Banks and Other Financial Institutions Act (BOFIA) would apply to the banks for lesson to other players.

According to the spokesman: “Both the management and staff of the affected banks will be sanctioned accordingly, especially those that operate in the SMEs segment of the market that banks are frustrating all efforts to see it come to fruition.

“The only way to make things better for Nigerians is for them to report to the CBN whenever they are in trouble or whenever, or are getting frustrated by banks.

“We want to urge everyone who is frustrated by banks to call and lay complaints. We assure you that you will get redress.”

It could be recalled that the CBN Director, Financial Markets Department, Alvan Ikoku, had in a previous circular to the Banks stated that any of them that fails to comply with the rules of this and other extant forex guidelines shall be sanctioned, up to the chief executive officer and other officials of such a bank.

Okoroafor said that the CBN would not tolerate anybody or institution bent on frustrating all efforts at revamping the economy.

Gsent Talks.....Taking You Further