Chimara BygoldAs the Central Bank of Nigeria (CBN) adopts measures to curb foreign exchange abuses, banks in adherence to the regulator’s directive, have informed their customers that forex requests can be processed online.
In the same way, 10 Deposit Money Banks have made public the names and Bank Verification Numbers (BVNs) of over 1,000 customers that engaged in Foreign Exchange (Forex) malpractices.
This follows earlier directive by the Central Bank to DMBs in July this year to publish names and BVNs of their customers using fake visas and other means to purchase Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), from commercial banks.
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Meanwhile, the banks can now process forex requests online with CBN’s automated Forms A & NCX for invisible and non-commercial export transactions, according to emails sent to customers.
CBN had instructed and authorized dealer banks to inform their customers of the development for compliance.
In an email sent to customers, Stanbic IBTC Bank stated, “We wish to bring to your notice that the Central Bank of Nigeria (CBN) has deployed the automated Forms A and NCX for invisible and non-commercial export transactions (in addition to commercial export already on the platform) on the Trade Monitoring System (TRMS) platform.”
This, according to the bank, is to take advantage of digital technology to streamline the request process so that applicants can submit requests from the comfort of their homes, as well as to unify the processes involved in completing these transactions and for global monitoring and reporting purposes.
It added: “It has therefore become imperative for every individual (Current and potential customer for invisible transactions such as tuition fees, upkeep, medicals, fees, BTA, subscription, professional exams, certification fees and other related requests) to immediately sign up on the Trade Monitoring System (TRMS) platform preparatory to cut over to the new system by the Central Bank of Nigeria (CBN).”
FSDH Merchant Bank Limited also sent a notice to its customers informing them of the CBN’s initiative to automate the processes of obtaining Forms A and NCX via online means.
The notice read, “Dear valued customer, we wish to bring to your notice that CBN has deployed the automated Forms A & NCX for invisible and non-commercial export transactions (in addition to commercial export already on the platform) on the TRMS platform.
“Hence, it has become imperative for every individual (Current and Potential customers for invisible transactions e.g., for tuition fee, upkeep, medical fee, BTA/PTA, subscription, professional exams/certification fee, etc.) to immediately sign up on the TRMS platform preparatory to cut over to the new system by the CBN.”
Similarly, in adherence to the directives of the apex banking sector regulator, Access Bank, Sterling Bank and Zenith Bank reported the most FX defaulting customers with their respective websites showing that Zenith recorded 879 FX offenders, Access reported 24, and Sterling Bank published 52, while Polaris Bank had 54 defaulters on its lists.
The use of fake visas, combined with already purchased travel tickets to buy foreign exchange from banks, before going on to cancel the air travel tickets, has been ongoing
Bureau de Change (BDC) operators, prior to their ban by the apex bank, relied on using customers to buy PTA and BTA from their banks.
Foreign exchange purchased through this means, at rates that could be as low as N412 to a dollar are often resold for rates as high as N560 per dollar at the street markets.
Polaris Bank is reported to have published 54 customers who cancelled their trips and failed to refund the travel allowances sold to them despite the follow-ups with these customers.
Also, Sterling Bank revealed that after buying dollars, its customers cancelled their trip but failed to return the PTA made available to them; noting that about six customers made applications for personal travel allowance (PTA) using fake visas and other documents at the point of collection
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