Banks Read Riot Act to Customers on FX Sales Policy, Warn Offenders
Nigerian banks on Wednesday sent detailed electronic mails to their customers, explaining the Central Bank (CBN) requirements for dollar purchases for eligible needs and warn customers to desist sharp practices that can undermine the foreign exchange policy, says it is financial crime.
MarketForces Africa sampled emails show the content is the same, which probably means it comes from the Central Bank as part of the sensitisation program on its new foreign exchange supply move.
According to sample emails, banks express commitment to meet customers’ legitimate transactions by providing foreign exchange for personal and business travel allowances.
CBN’s also permit foreign currencies purchases from banks for overseas Education, Medical and other eligible invisible transactions.
Sources told MarketForces Africa that the recent information from banks followed an unpublished demand by the CBN asking banks to educate customers on how to access foreign currencies.
Recall the CBN announced it has stopped weekly dollar supply to bureau de change amidst concern that banks bureaucratic process could delay transactions.
Since the announcement in July, the naira exchange rate has remained under pressure at the parallel market segment, trading at N520 as against the official rate of N410 in the national autonomous foreign exchange fixing rate while banks sell for N412.
Banks are asking customers to comply with the CBN demand. You have a role to play to ensure the success and integrity of the policy, GTBank said in an email of Wednesday.
Meanwhile, the CBN stipulate that customers applying for FX for Personal and Business Travel should avoid sharp practices that can undermine the integrity of the foreign exchange market.
Speaking through Nigerian banks, it explained that FX shall be old for legitimate travel purposes only, asking customers to always have a clear intention and legitimate purpose to travel.
Read Also: CBN begins FX sales, says it has capacity to meet legitimate needs
On that note, banks required customers to provide a valid Nigerian passport and a valid visa to an international destination.
Also, the apex bank indicates that only valid travel documents shall be accepted for foreign currencies purchased for the purpose. “Your ticket must be to an international destination outside of West Africa and Cameroun.
“You are required to provide an international return ticket, with a travel date not more than 14 days from the date of personal or business travel allowance purchase”, GTBank informed customers.
Also, customers can only apply for personal or business travel allowance once in a quarter, adding that PTA and BTA requests are limited to a maximum of $4,000 and $5,000 per quarter per applicant respectively.
Banks guide that customers should return unutilised allowance to the bank within two weeks from the date of purchase, especially if not utilized for the intended purpose or if for any reason the scheduled trip is cancelled.
CBN will frown at any application submitted on behalf of a third party, saying this no customer should engage in such act even for legitimate transactions.
According to sources in banks, foreign currencies will only be sold directly to Nigerians who are 18 years and above and have a valid Bank Verification Number (BVN).
In addition, banks warned that false application and use of fake documents comes with a stiff penalty and ask customers to desist.
“False application and use of fake documents to purchase PTA/BTA is strictly prohibited and is a financial crime punishable under the applicable laws in Nigeria”.
CBN, Banks warn that defaulters of the current FX policy may face sanctions that include being barred from accessing foreign currencies from the official FX market in the future, restrictions on their bank accounts for such periods as may be determined by the CBN as well as possible criminal prosecution.
Banks Read Riot Act to Customers on FX Sales Policy, Warn offenders
