By Eyo Nsima

The Central Bank of Nigeria, CBN, Friday, threatened to suspend the license of banks involved in illegal foreign exchange transactions.

In a letter to the banks, Director, Trade and Exchange Department, CBN, Dr. O.S. Nnaji, stated: “In line with our continuing close surveillance of our financial markets in general and the foreign market in particular, the CBN wishes to remind all banks that it is their responsibility to not only know their customers (KYC requirements), but also know their customers’ businesses (KYCB requirements).

“Given these responsibilities and in view of recent occurrences in the market, the CBN would like to remind banks to desist from all and any forms of FX malpractices.”

He also added: “We wish to reiterate that FX operating license of any bank or banks that are found culpable with ongoing investigations would be suspended for at least one year. Please note and ensure compliance.”