“Shine your eyes”: CBN alerts Nigerians on fake foreign currency transfers

• The Central Bank of Nigeria (CBN) has raised the alarm about the growing wave of fake foreign currency transfers
• CBN warned Nigerians against fraudulent SWIFT messages and unsubstantiated claims about foreign currency transfers 
• A statement by the CBN said it has been inundated by petitions claiming foreign currencies sent to them have not been credited to their accounts

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Central Bank of Nigeria (CBN) has alerted Nigerians, warning them against fraudulent SWIFT messages and unsubstantiated claims about foreign currency transfers allegedly held up in Nigerian banks or CBN itself.

The apex bank expressed readiness to contact law enforcement agencies to probe and prosecute persons making such claims.

CBN is besieged with foreign currency claims

The warning comes amid a surge in petitions from individuals, law firms, government agencies, and private entities claiming that foreign currencies sent to their accounts by foreign organisations have yet to be credited.

CBN said these claims often include fake documents such as SWIFT MT103 and SWIFT acknowledgement (ACK) copies as proof of remittance.

The bank disclosed in a statement signed by Hakama Sidi Ali, acting director of corporate communications, that the documents are unreliable, saying that they cannot be traced on the SWIFT platform.

According to the statement, the standard procedure for addressing non-receipt of funds is for the sender to request that the sending bank trace the funds via a formal tracer process rather than escalate it to the CBN or law enforcement.

CBN blows hot, vows to prosecute fake claims

The CBN spokesperson dismissed claims that the apex bank provides correspondent banking services or maintains accounts for private businesses.

The financial institutions’ regulator asked Nigerians to remain vigilant, warning that any individual or entity making unfounded claims would face legal consequences.

Diaspora remittances surge.

Experts believe the recent surge in diaspora remittances may have led to the increasing foreign currency scams.

A recent report by Legit.ng shows that foreign exchange inflows into Nigeria hit $57 billion in August 2024. 

Muhammad Abdullahi, CBN’s Deputy Director of Economic Policy, updated the audience on Nigeria’s forex situation in Washington, D.C.

Abdullahi stated that capital importation almost doubled to $6.9 billion in August this year, compared to $3.9 billion recorded during the 2023 financial year.

CBN clarifies converting foreign currency in domiciliary accounts

Legit.ng previously reported that the Central Bank of Nigeria (CBN) has issued new rules clarifying that commercial, merchant and non-interest banks (CMNIBs) should let holders convert their Internationally Tradable Foreign Currency (ITTC) balances in designated domiciliary accounts into the local currency, the naira at any time, using the prevailing exchange rate.

The bank disclosed that all conversions must be fully disclosed and reported as part of the bank’s exchange rate requirements.

Legit.ng reported that in February 2024, the apex bank reaffirmed that it would not coerce domiciliary account holders to convert their holdings into naira.

Source: Legit.ng