….As CIBN boss seeks NDLEA, EFCC, collaboration on illicit finance flow***
The Central Bank of Nigeria (CBN) has concluded plans to increase the amount of foreign exchange allocated to banks to meet the requests of customers.
This particularly relates to requests of travelers seeking foreign exchange for travel allowances, payment of tuition and medical fees, among other invisibles.
It follows a warning issued by the CBN Governor, Mr Godwin Emefiele, at a meeting with the Managing Directors of Deposit Money Banks (DMBs).
Emefiele cautioned them to desist from denying customers, particularly travelers, the opportunity to purchase foreign exchange.
This is foreign exchange for the purposes of Personal Travel Allowance (PTA), Basic Travel Allowance (BTA), tuition fees, and medical payments, as well as Small and Medium Enterprises (SMEs) transactions or for the repatriation of Foreign Direct Investment (FDI), proceeds.
Sources close to the meeting held at the weekend, over the challenge faced by customers in accessing forex from their banks, said the Governor warned that the CBN would take action against any bank that denied customers the opportunity to purchase foreign exchange for legitimate purposes.
The sources disclosed that the CBN management frowned at the seeming difficulty customers experienced in accessing foreign exchange through their respective banks.
This is forex particularly for invisibles such as PTA and requests bordering on tuition and healthcare needs.
According to the sources, CBN may release hotlines for aggrieved customers to report banks that fail to sell foreign exchange to them even after providing required documentation.
The Acting Director, Corporate Communications Department at the CBN, Osita Nwanisobi, on Sunday confirmed the discussions at the meeting of bank chiefs.
He said that the bank remained committed to ensuring liquidity in the foreign exchange market.
This is to meet genuine and legitimate demands of customers.
He said : “The CBN agreed to increase the amount allocated to banks for travelers, Small and Medium Enterprises among others.
“The banks also agreed to operate something akin to foreign exchange imprest account such that the coffers of banks would be replenished so long as they retire the initial amounts to the satisfaction of the CBN”.
Nwanisobi urged interested members of the public seeking to purchase foreign exchange for PTA, BTA, payment of tuition fees or medical fees to approach their respective banks for that purpose.
“We wish to assure members of the public that the CBN shall continue to monitor market developments and is committed to ensuring an efficient FX market for all legitimate users,” he said.
He advised customers to approach customer service representatives of their designated banks should they encounter challenges.
Nwanisobi urged them to forward their complaints to the Central Bank of Nigeria via the Bank’s toll-free line: 07002255226 or send an email to cpd@cbn.gov.ng if their requests are not met.
In another development, the Chartered Institute of Bankers of Nigeria (CIBN) has called on the National Drug Law Enforcement Agency (NDLEA) and the Economic and Financial Crimes Commission (EFCC) to collaborate with it to check illicit finance flow in the country.
The CIBN made the call in a statement issued by it’s Head of Corporate Commission, Mr Nelson Olagundoye, on Sunday in Lagos.
The statement said also that the institute was proposing an annual joint conference that would focus on proffering solutions to the challenge, as part of the collaboration.
Also read: Drug abuse: Ex-EFCC boss wants partnership with NDLEA
According to the statement, the President/Chairman of Council, CIBN, Dr Bayo Olugbemi, made the call when he was received by the Executive Chairman/Chief Executive of NDLEA, retired Brig Gen. Mohammed Buba Marwa, in Abuja recently.
The CIBN President said that the purpose of the visit was to discuss how CIBN could deepen the relationship between the agency and the banking industry.
This is toward building a better Nigeria, a Nigeria that would be drug-free and one to be proud of.
Olugbemi said that the institute was ready to collaborate with the NDLEA Academy on relevant certification programmes as well as to provide technical expertise to enhance the existing competencies in the Academy.
He urged the agency to partner with the institute to educate Nigerian youths on the dangers of hard drugs to the human health.
Olugbemi further sought the support of the Agency for the proposed amendment of the CIBN Act of 2007.
This is to enhance the power of the disciplinary tribunal to discipline erring bankers, among others.
The CIBN President applauded the Agency for the effective and efficient administration in fighting smuggling, production, trafficking and use of illicit drugs.
Marwa, while welcoming the CIBN team, said that about 15 million Nigerian youth were into illicit drug consumption.
He said their indulgence contributed to the high level of criminality in the country, especially banditry and incessant kidnapping of school pupils.
He said that the Agency had been dealing drastically with a supply chain of illicit drugs.
According to him, over N90 billion worth of drugs has been confiscated by the Agency while going after the properties of the drug barons.
He assured the institute of the Agency’s readiness to collaborate with it on Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF).
The NDLEA chief also promised collaboration on relevant banking operation fundamentals, to fight against criminality in the country.
Marwa also lauded the advocacy role of CIBN in the Financial Services Industry, adding that the agency would support the Institute on the CIBN Act review when presented to the National Assembly.
He promised to continually support the Institute’s leadership and be more active and committed to the Institute’s activities, programmes and events.