- Nigerian commercial banks to begin freezing dubious company accounts
- CBN says there are some company accounts disguising as individual accounts
- Decision became necessary due to shady money transfer
The Central Bank of Nigeria (CBN) on Friday, August 26, directed deposit money banks (DMBs) to freeze company accounts “masking” as individual accounts, which are used to receive illicit foreign exchange transaction.
The CBN issued a circular against this backdrop. The circular was signed by the apex bank’s acting director on trade and exchange department, WD Gotring.
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Gotring stated that all illegal money transfer via the banking system should stop.
The circular reads in part: “Further to the guidelines for the operation of International Money Transfer Service (IMTS) in Nigeria referenced TED/FEM/FPC/GEN/01/016 of September 26, 2014, we have observed that some deposit money banks (DMBs) are operating accounts either as companies or companies masking to be individuals for the purpose of illegally receiving money transfer flows into those accounts for onward disbursements to recipients in Nigeria.
“The CBN therefore reiterates that the DMBs have the absolute responsibility to conduct Know Your Customers 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, to submit the mandate and account details of these accounts held in naira or foreign currency.”
The apex bank which oversees the Nigerian banking sector, stated that it remains dedicated to ensuring a stable monetary system in the country.
A few days ago, one of the commercial banks, First City Monument Bank (FCMB) officially responded to the sanction imposed by the Central Bank of Nigeria (CBN) over Treasury Single Account (TSA) Funds.