By Chioma Obinagwam
Nigeria’s apex bank, the Central Bank of Nigeria (CBN) has said stiff sanctions await any customer or bank who defrauds the new Foreign Exchange (Forex) policy.
The apex bank informed Confiance News at a press briefing of the 357th Bankers Committee meeting held virtually on Thursday.
Confiance News recalls that at the 280th Monetary Policy Committee (MPC) meeting, the governor of the CBN, Godwin Emefiele announced an end to the supply of Forex to Bureau De Change (BDC) operators.
The governor, however, instructed Deposit Money Banks (DMBs) in the country to set-up Forex desks in their various banks to attend to invisibles such as Business Travel Allowance (BTA), Personal Travel Allowance (PTA), among others.
According to the Managing Director (MD) of First City Monument Bank (FCMB), Yemisi Edun, there have been reports of fraudulent activities by some customers who feign need for Forex.
She said, “We’re using digital means to detect fraudulent activities. We noticed people coming with airline tickets and going back to cancel the tickets after they have been given Forex.”
Also, the Group Managing Director (GMD) of Guaranty Trust Holding Company (GTCO), Segun Agbaje added that the new Forex policy is for people that have genuine needs.
He noted that those who defraud the system will be punished.
“The whole idea is to ensure that you don’t defraud the bank. If you defraud the system, the likely punishment is that your account will be PNDied and if you know what it means for your account to be PNDied,” he warned.
Confiance News gathered that a PND, which means Post-No-Debit is a directive that restricts a bank customer from withdrawing funds from his bank account.
Agbaje noted that the sanctions are not limited to customers but banks who flout the rules.
“You know the CBN very well. If you contravene, you will be sanctioned. The bank themselves and bank staff have a responsibility. The EDs of banks have the responsibility to make sure it works,” he disclosed.
Agbaje further stated that in order to improve customer experience and check fraud, the process will be digitized.
He added that the Nigeria Inter-Bank Settlement System (NIBBS) is working on an app that will enable the digitisation of the process.
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