CBN restates plan to sanction banks which fail to comply with forex sales point directive

The Central Bank of Nigeria (CBN) Monday restated its decision to sanction any Deposit Money Bank (DMB) which failed to comply with its earlier instructions to open teller points for retail foreign exchange transactions in all locations.

The apex bank’s acting Director, Corporate Communications, Isaac Okorafor, said in a statement issued in Abuja that the CBN would also penalise banks which failed to install electronic display boards showing rates of all trading currencies in all their branches.

Recall that the CBN had in March directed banks and dealers to open teller points for retail foreign exchange transactions, like Personal and Business Travel Allowances, including buying and selling, in all locations, to facilitate access to foreign exchange by customers.

The March 2017 circular had warned that the CBN would sanction banks that failed to comply fully with the directive by October 13.

The circular had also directed DMBs to install electronic display boards in all their branches, showing rates of all trading currencies, while it urged customers to insist on the displayed price while transacting.

It noted that the objective was to create awareness among members of the public regarding the availability of such facilities in branches of the banks at very visible strategic points, so that customers would not be cheated.

Okorafor said that the CBN was giving erring banks a four-week period, expiring on October 13, to fully comply with its directives or face regulatory sanctions.

He stated that the sanctions include, but not limited to, being barred from all future CBN foreign exchange interventions.

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