CBN Ask Banks Not to Sell Forex without Appropriate Documentation

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By InvestAdvocate

Lagos (INVESTADVOCATE)-The Central Bank of Nigeria (CBN) has asked commercial banks not to sell foreign exchange without appropriate documentation and disclosure to authorities, irrespective of the source of funds.

The CBN gave this directive in circular with reference number TED/FEM/FPC/GEN/01/008 dated August 22, 2016 and signed by W.D, Gotring, acting director, Trade & Exchange Department of the CBN.

The CBN said it has noticed that authorised dealers have continued to buy and sell foreign exchange referred to as “free funds” despite earlier directives issued by the apex bank.

“Against the background, authorised dealers are to note that dealing in foreign exchange without appropriate documentation which includes relevant entries, blotters, physical documents and non-disclosure to the regulatory authorities is breach of extant regulations,” the CBN circular said.

Click here to read full circular

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