CBN Moves Against Illegal International Fund Transfer – Thisday


The Central Bank of Nigeria on Friday said it observed that some banks are operating accounts either as companies or companies masking themselves as individuals for the purpose of illegally receiving money transfer flows into those accounts for onward disbursements to recipients in Nigeria.

This came on the day the naira sustained its downswing on the parallel market as it fell to a record low of N412 to the dollar, as against the N408 to the dollar it closed the previous day.

To curb this international fund transfer, the CBN in a circular titled: “Illegal International Money Remittances Through the Banking System,” dated August 25, 2016, and signed by its Acting Director, Trade and Exchange Department, Mr. W.D. Gotring, directed banks to identify and freeze such accounts receiving illicit flows with immediate effects.

The banks were also directed to submit the mandate and account details of these accounts held in naira or foreign currency to it for onward reporting to the security agencies.
“The CBN therefore reiterates that deposit money banks have the absolute responsibility to conduct Know Your Customers’ Business (KYCB) checks on all their customers to ensure that they do not transact in illegal/illicit flows,” it added.

Meanwhile, experts have expressed concern that the falling value of the naira coupled with a high inflation rate of 16.5 per cent is making the nation’s currency to lose its function as a store of value.
But on the interbank forex market, the spot rate of the naira rose marginally to N314.95 to the dollar yesterday, higher than the N316.84 to the dollar it closed the previous day.