Cbn Says Banks Violating International Money Transfer Laws As Naira Continues To Slide In Parallel Market

SAN FRANCISCO, August 27, (THEWILL) – The Central Bank of Nigeria (CBN) says commercial banks are circumventing its international money transfer rules by criminally opening multiple company and personal accounts where they receive inflows for onward disbursements to recipients in Nigeria.

In a circular to banks titled: Illicit International Money Remittances Through The Banking System, and signed by CBN Acting Director, Trade and Exchange, W.D. Gotring, the apex bank said the practice is against guidelines for the operation of International Money Transfer Service (IMTS) in Nigeria of September 26, 2014, warning the lenders to desist from such unwholesome practices.

The CBN's warning to banks is coming as the naira continues to tumble in the parallel market, closing at N415 – $1 over the weekend, a level never seen before. Nigeria’s economy, which solely depends of returns from crude oil sales has been struggling since the price of the commodity crashed.

Nigerian banks often engage in unethical practices because Nigeria's crime and punishment structure is weak. The CBN under Governor Godwin Emefiele has been clamping down on illicit banking practices, slamming banks with severe sanctions for violating regulatory provisions.

Below is the circular from the CBN: