BCAN Backs Banks, CBN in Publishing Forex Defaulters’ Names

Nume Ekeghe

The Bank Customers Association of Nigeria (BCAN) have lauded the Central Bank of Nigeria (CBN) foreign exchange policy and deposit money banks decision to publish the names of violators of the CBN FX policy.

This is just as seven names have been listed by the United Bank for Africa Plc and First City Monument Bank (FCMB) Plc to have flouted the forex policy of the central bank.

The customers were alleged to have either presented fake Visas, fake tickets and documentations for travel and did not travel.

The customers it was learnt are likely to be penalised by post no debt (PND) on all banking platform.

To serve as deterrent, the CBN had recently directed banks to publish on their websites, the names and BVN of exploitative customers who indulged in sharp practices to circumvent its foreign exchange policy.

Meanwhile, BCAN have lauded the CBN and the banks for this initiative, but however urged that the banks shouldn’t falsely accuse customers who didn’t commit any offence.

THISDAY had reported on Monday that UBA had listed three customers’ names including their account numbers.

However, FCMB yesterday posted four names of customers including their Bank Verification Numbers (BVN).

In a statement on its website, FCMB noted that the customers would be persecuted in due course.

It stated: “In line with the Central Bank of Nigeria (CBN)’s mandate, below is a list of customers who have breached the Policy on purchase of FX for Personal / Business Travel Allowance (PTA/BTA).”

“The directive affects customers who purchase FX via fraudulent means such as presenting fake travel documents or cancellation of flights after buying PTA/BTA and failing to return same within two weeks, as stated in the declaration form. Beyond having their names published on the website, such customers may also be liable for criminal prosecution, ”the bank stated.

On its part, UBA revealed that the customers were contacted by several email, phone calls, messages but failed to return the funds.

UBA in a publication on its official website titled, “CBN FX defaulters,” stated that the decision to publish the customers’ details is in line with the directive by the CBN.

“In compliance with the directive of Central Bank of Nigeria mandating banks to publish the names of defaulters of the forex exchange regulation, based on regulatory directives, the following customers cancelled their trip and failed to return the PTA availed to them despite several mails, text messages and follow up phone calls,” the publication reads.

The bank also included the name of a customer, who allegedly presented fake visa to apply for PTA
CBN in a circular to all banks dated August 30 and signed by its Director, Banking Supervision Department, Mr. Haruna Mustafa, stated that the trend if not curbed, presented risk to the integrity and stability of the forex market.

“CBN, therefore, directed banks to publish on their websites within two weeks the names and BVN of defaulting customers who presented fake travel documents or cancelled their tickets and failed to return the purchased PTA/BTA, as stipulated in the customer declaration form signed by them.”

Speaking at the end of the last bankers committee meeting, the Group Chief Executive Officer, Guarantee Trust Holding Company Plc, Mr. Segun Agbaje, said the banks are capable and eager to support the Central Bank of Nigeria’s (CBN) FX policy.

On the use of PND, he said: “Banks will report the individuals to the CBN. The likely punishment is that your account would be PND. And if you understand what that means, PND means you would not be able to do anything in the banking system.”

Also, the President of Bank Customers Association of Nigeria, Dr. Ogubunka Uju in an interview with THISDAY backed the banks and CBN for this move to punish customers who are in breach of the Fx policy.

Uju said: “If people are messing up with the system, they deserve to be fished out and prosecuted within the arms of the law. I don’t think there is a mistake from CBN. However, where it would be a problem would be when there is a miscarriage of justice if a customer has not done anything wrong and yet their names are being published.”

Fx for travellers is set at the maximum of $4000; it is however believed that these customers might have defrauded the system of $28,000.