Concerned about the Naira-to-Dollar exchange rate, Nigeria’s Central Bank has issued a strong warning to Deposit Money Banks, threatening to revoke their licenses for one year, if they are found wanting in foreign exchange operations.

According to CBN, banks must always observe due diligence when carrying FX transactions.

CBN gave the warning in a letter by the Director of Trade and Exchange Department, Ozoemena Nnaji, and addressed to the DMBs obtained by Ripples Nigeria on Sunday

Nnaji urged the banks to, not only ensure to know their customers, but also to know their customers ‘ businesses.’ She said the directive was necessitated by recent occurrences in the FX market.

Part of the letter reads:“The CBN wishes to remind all banks that it is their responsibility to not only know their customers (KYC requirements) but also know their customers’ businesses (KYCB requirements).

“Given this responsibility and in view of recent occurrences in the market, the CBN will like to remind banks to desist from all forms of FX malpractices.

“We wish to reiterate that FX operating licences of any bank or banks that are found culpable with ongoing investigations will be suspended for at least one year,” the director said.

She also urged all the DMBs concerned to take note and ensure compliance.