CBN To Sanction Firms, Directors Over 41 Items
The Central Bank of Nigeria (CBN) is to wield its big axe on Banks, their customers, firms that abuse its policy restricting foreign exchange (forex) allocation to 41 items.
According to the apex bank investigations will be carried out on culprits by the Economic Intelligence Unit of the CBN in collaboration with the Economic and Financial Crimes Commission (EFCC).
The CBN explained through its Director, Financial Policy & Regulation Department, Kelvin Amugo, said that such sanctions will, among others, include blacklisting the institutions and their directors; closing of their accounts; and restricting them from maintaining accounts in any bank across the length and breadth of the country.
Part of the letter reads: “The CBN views this development with trepidation. The Economic Intelligence Unit of the CBN in collaboration with the Economic and Financial Crimes Commission (EFCC) would commence immediate investigation of the accounts of the corporates and entities engaged in this unwholesome act with a view to visiting severe sanctions on all the culprits.”
According to the apex bank, the implementation of the policy has resulted in massive investment and the establishment of cottage industries that now engage in the production of the restricted items across the country. The growth and development benefits have been phenomenal.
It said: “Unfortunately, the trade information available to the CBN indicates the circumvention of the policy as the restricted items are being dumped in the country. The implications are that the growth and employment benefits arising from the policy may be eroded if not checked.
“Banks are by this notice, advised on strict compliance with the Know Your Customers (KYC) and Know Your Customer Business (KYCB) requirements and be properly guided.”