DIFFERENT STROKES FOR BUREAUX DE CHANGE

In what appears to be different strokes for operators of bureaux de change given today's zero tolerance for financial crimes, the Central Bank of Nigeria (CBN) has asked ALL bureaux de change in the country to come forward to collect back their mandatory N35m caution deposit.
This is in spite of the fact that recently, while announcing CBN's decision to stop selling foreign exchange to them, the Governor of the CBN Mr Godwin Emefiele had accused some of them of trading above their allowed limits and falsifying mandatory reports to the apex bank.
The Governor, Mr Emefiele had said some went as far as supplying false bank verification numbers in the process.
However, unless it was a case of giving a dog a bad name to hang it, these allegations remain financial crimes in Nigeria especially when it is remembered that forex round tripping was a major factor responsible for today's Nigerian forex stranglehold.
The CBN circular dated January 22 2016 was signed by Mr Kevin Amugo, Director financial policy and regulation.
In it each BDC was asked to apply for the N35m refund of the mandatory caution deposit giving evidence of payment and bank transfer details.
Perhaps, it was considered enough punishment or deterrent that forex sales to them was stopped but the truth still remains that filing false reports remains a deliberate breach of the law especially since it was obviously intended to cover up rent taking on forex bought at official and resold at black market or at best interbank rates. It should have, at the least, attracted fine deductible from the mandatory deposit
Meanwhile, another recent circular from the same financial policy and regulation department has been trending and making waves too.That is the one dated January 20 on the need to charge negotiable maintenance charges of not more than one Naira per N1000 on debit transactions by current account holders.
The circular was intended to put an end to commission on turnover (COT) which as per bankers committee 2013 agreement, should have terminated with the dawn of 2016 after gradual phase out.
More importantly, says the CBN, the circular became necessary because some banks charged maintenance fees alongside reduced COT while the phasing out was on.
Excluded from the maintenance charges are of course savings accounts but it will be hard for small volume current account holders to be in a position to negotiate with their banks.
Thus, it is most likely that such may be charged the blanket maximum without much of a say.

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