CBN dangles tools to monitor banks when they facilitate illegal forex
By Jeph Ajobaju, Chief Copy Editor
Politicians have been warned by the Central Bank of Nigeria to watch their backs because naira exchange for dollar speculation to fund election is illegal and will be punished with an embargo on their accounts.
CBN Governor Godwin Emefiele brought out the big stick in Abuja when he spoke on the impact of election spending on the value of naira versus the dollar.
He said the CBN is monitoring the situation and will continue to use monetary policy (discretionary powers) tools to mop up excess liquidity in the system when banks may want to facilitate election spending or speculate on foreign exchange (forex).
“As for those who want to take naira from their account to buy dollars because of election. I want to warn that it is illegal to do so,” he stressed.
“It will sound more convenient to carry dollars, because you could carry little dollars with a lot of value in your pocket, but if the security agencies hold you, you know the implication of that.”
Emefiele disclosed the CBN has monitoring tools to track suspicious movement of forex from one account to another.
“We will continue from our own side to use our own apparatus through which we monitor movement of funds between customers or between banks and customers or from one bank to another bank.
“Any bank that we find in those forms of transactions will be considered to be unauthorised or considered to be illegal you can consider that your account will be placed on PND (Post No Debit).
The CBN uses PND to restrict the transfer of funds from any bank account suspected of being used illegally. For the duration of PND, an account cannot have any money transferred to or withdrawn from it.
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CBN with eagle eyes
Emefiele warned potential collaborators the CBN is a monster and will use PND to stop customers from using their accounts for any bank transactions, according to reporting by Nairametrics.
“You can see CBN has turned itself into a monster that uses an injurious tool to stop you from conducting illegal flows whether domestic or foreign currency.
“So, I will advise you not to get involved in unauthorised and illegal movement of money from your bank to your account or from one account to another account, or a currency conversion.
“When you do that and you are caught in that practice your account will be placed on PND.”
CBN Examiners typically place suspicious accounts on PND during routine banking examinations.
Banks are also heavily fined when found wanting. But PND placed on some accounts can be lifted by court orders in favour of the account owners.
