From Adanna Nnamani, Abuja
The Central Bank of Nigeria (CBN) has concluded a forensic audit into undelivered foreign exchange (FX) forward contracts and is set to crack down on violators of its rules.
The apex bank said it will work with law enforcement and regulatory agencies to pursue legal action, including civil, administrative, or criminal sanctions where necessary. This was revealed in a document titled “Frequently Asked Questions on the Settlement of Undelivered Forward Contracts”, published on the CBN’s website.
“Is any legal action being taken against those parties deemed to have breached rules?
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“The CBN is reviewing appropriate legal action against parties found to have violated applicable rules and regulations, based on the findings of the forensic audit.
“The Bank will collaborate with law enforcement and regulatory agencies to pursue civil, administrative, or criminal sanctions, as necessary,” the bank said.
To restore discipline and transparency in the FX market, the CBN engaged Deloitte in September 2023 to carry out a thorough audit of transactions under the Retail Secondary Market Intervention Sales (RSMIS) scheme. The audit focused on verifying whether the FX forward contracts were backed by legitimate demand and adhered to regulatory guidelines.
Following the investigation, the bank uncovered several infractions, including fake or incomplete documentation, importation of prohibited items by unqualified companies, inflated invoices, inconsistencies in company names, and, in some cases, outright absence of any underlying transaction. Some contracts were also flagged for listing items with no clear description or demand.
The CBN said it had no obligation to honour any FX forward request tainted by fraud, misrepresentation, or regulatory breach. While it confirmed that all valid and compliant contracts have been settled, invalid ones were cancelled, with the Naira deposits of affected parties returned.
The apex bank maintained that paying for such contracts would have undermined regulatory compliance, encouraged impunity, and unnecessarily depleted Nigeria’s foreign reserves.
It added that affected banks and clients were given a fair hearing during the audit process, but insisted the matter is now closed and not subject to appeal.
Going forward, the CBN said only forward contracts that meet all documentation and regulatory requirements will qualify for settlement.
It reaffirmed its commitment to transparency, market integrity, and prudent management of the nation’s reserves.
The post No pay for bogus FX claims, CBN tells defaulters appeared first on The Sun Nigeria.
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