The Central Bank of Nigeria (CBN) has accused commercial banks of compromise in the ways they handle proceeds from international money transfer inflows into the country.
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, accused the lenders of opening multiple illegal company and personal accounts where they harvest dollar proceeds for onward disbursements to recipients in Nigeria.
The practice, Gotring said, 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.
โFurther to the guidelines for the operation of International Money Transfer Service (IMTS) in Nigeria of September 26, 2014, we have observed that some Deposit Money Banks (DMBs) are operating accounts either as companies or companies masking themselves as individuals for the purpose of illegally receiving money transfer flows into the accounts for onward disbursements to recipients in Nigeria,โ he said in the circular obtained yesterday.
He therefore ordered the lenders to conduct Know Your Customerโs Business (KYCB) checks on all their customers to ensure that they do not transact in illegal/illicit flows and also freeze compromised/ identified defaulting accounts.
โThe CBN therefore reiterates that the DMBs have the absolute responsibility to conduct Know Your Customerโs Business (KYCB) checks on all their customers to ensure that they do not transact in illegal/illicit flows. Consequently, DMBs are hereby directed to identify and freeze accounts receiving illicit flows, submit the mandate and account details of these accounts held in naira or foreign currency to the CBN for onward reporting to the security agencies,โ he said.
