EXPERTS SAY CBN’S NEW RULE ON FOREX WILL HELP CURB MONEY LAUNDERING

Financial experts have expressed the opinion that the Central Bank of Nigeria’s (CBN) new regulation on the foreign exchange market will contribute to the reduction of money laundering activities. The CBN recently introduced measures to enhance transparency and traceability of forex transactions, including the requirement for foreign investors to repatriate export proceeds within 90 days.

According to the experts, the move is a positive step toward curbing money laundering and enhancing accountability in the financial system. They believe that the new regulations will discourage illegal financial activities and promote a more secure and compliant forex market.

The CBN’s initiatives are seen as crucial for maintaining the integrity of Nigeria’s financial sector and fostering investor confidence. However, some observers suggest that continuous monitoring and enforcement will be essential to ensure the effectiveness of these measures in the long run.

Financial experts have lauded the Central Bank of Nigeria’s (CBN) recent regulations in the foreign exchange market, emphasizing that these measures will enhance transparency, traceability, and reduce money laundering. The new guidelines require sellers of $10,000 and above to declare the source of foreign exchange. Additionally, beneficiaries of Basic Travel Allowance (BTA) or Personal Travel Allowance (PTA) will receive up to 25% of the foreign currency in cash, with the remaining 75% transferred electronically to the customer’s Nigerian domiciliary account or prepaid card.

Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprises (CPPE), welcomed the initiative to sanitize the Bureau de Change (BDC) sector, stating that BDCs play a crucial role in servicing the retail end of the forex market. He believes that the reduction in the amount of cash for travel allowances is a positive move.

However, some experts, like Paul Alaje, a senior partner at SPM Professionals, expressed concern about the implementation of the regulations by banks. He highlighted the need for effective monitoring to ensure that banks comply with the CBN’s directives.

Professor Uche Uwaleke, President of the Association of Capital Markets Academics of Nigeria (ACMAN), commended the regulations, stating that they are designed to sanitize the BDC segment, curb money laundering, and reduce corruption. Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria (ABCON), welcomed the draft regulations, emphasizing the importance of stakeholders’ input.

ABCON also noted that BDC operators would resume operations, subject to CBN monitoring, after a week of sustained raids by security agencies. Gwadabe emphasized the draft’s flexibility, allowing licensed operators various access points, including CBN and domiciliary account windows. He expressed confidence that licensed operators would provide competitive pricing and convenience, making unlicensed operators less effective.

From the Daliy Trust News Reporters: DailyTrust