E-Financial
Bank Chiefs Threaten Arrest, Prosecution of Customers Involved in Fraudulent Forex Purchases
The chief executives of deposit money banks in the country have warned customers against using fraudulent methods to get access to foreign exchange (Forex) from banks, saying those caught perpetrating such acts would be prosecuted.
Some of the fraudulent activities observed by the executives include using expired travel tickets and fake passports in a bid to procure forex.
The banks’ warning comes amid complaints by some customers who lamented that they continued to experience difficulty in accessing forex from banks, forcing them to resort to Bureaux de Change.
The Central Bank of Nigeria (CBN) had on July 27, at the end of the Monetary Policy Committee meeting, announced the stoppage of forex sale to the BDCs, saying they had turned themselves into “agents that facilitate graft and corrupt activities of people who seek illicit fund flow and money laundering in Nigeria”.
Mr Godwin Emefiele, governor, CBN, said the apex bank would channel a significant portion of its weekly allocation meant for BDCs to commercial banks to meet legitimate forex demand for ordinary Nigerians and businesses.
Financial Derivatives Company Limited had last week described the documentation process required by banks for the sale of foreign exchange as cumbersome, saying this would pose a challenge to the public.
Banks’ chief executives, at a press briefing held after the Bankers’ Committee meeting on Thursday, said they had been attending to customers requesting forex through their teller points.
Herbert Wigwe, managing director of Access Bank and chairman of the committee, said customers who failed to comply with the rules stipulated by the CBN would be reported to the law enforcement agencies for further prosecution.
Yemisi Edun, managing director, First City Monument Bank “Banks are ready and prepared to address the need of customers and all banks have been attending to customers. We have our teller points and the CBN has been providing the funding.
“We are using digital means to take records and data. We have a portal with means to track fraud. For example, we noticed people coming with airline tickets and then cancelling in a bid to obtain forex. We have means to stop this kind of behaviour.
“We encourage customers to use their banks to obtain forex as well as using electronic means of crediting their cards instead of carrying cash to buy invisibles. The banks are prepared with teller points to handle demand.”
Segun Agbaje, group chief executive officer, Guaranty Trust Holding Company Plc, noted that the Nigeria Inter-Bank Settlement System Instant Payment had created a portal for forex to be bought online.
Agbaje, while speaking to the issue said banks do not want “fraudulent transactions taking place” in the guise of forex transaction.
He said, “We are digitising the system to make it quicker, faster and cheaper. There will be no need to carry cash around when travelling, as card transactions make it seamless, which is what obtains in other parts of the world.
On how the forex market is doing since the ban, Agbaje said legitimate demands for Basic Travel Allowance (BTA) and Personal Travel Allowance (PTA), medical needs and educational purposes “are working very well”.
He urged bank customers to consider putting their forex in cards as the Banker’s Committee is considering digitizing the process. Banks and their staff he assured are being held accountable if forex infractions are traced to them while the CBN is holding the banks themselves on a short leash to prevent fraudulent activities by the banks when transacting forex deals.
Titan Trust Bank has selected Oracle FSS for its core and digital banking technology, it is understood.
The start-up bank recently obtained its license by the Central Bank of Nigeria (CBN).
It’s understood that Temenos and Infosys also competed for the deal.
The shortlist came down to the two most widely installed international core systems in Nigeria, Infosys’ Finacle and Oracle FSS’s Flexcube.
The Nigerian banking sector has seen a great deal of upheaval over the years, with many mergers, start-ups and closures. Flexcube is a well respected name since the late 1990s (the pioneer was Access Bank, now one of the country’s top five banks) and has been a commonly selected platform since then.
The new bank is believed to be one of five to have gained regulatory approval of late (Globus Bank is another).
Local media sources say the new licences stem from the Central Bank’s desire to attract new investments into the sector and better serve the country’s 50 million+ unbanked and under-banked citizens.
Titan Bank is said to be headed by a former executive director of Heritage Bank (which is a Finacle user).
Oracle FSS did not respond to request for comment.
International Monetary Fund (IMF), has appointed Tony Elumelu, Nigerian billionaire and group chairman of Heirs Holdings, owners of United Bank of Africa, to its advisory council on entrepreneurship and growth, convened by Kristalina Georgieva, the fund managing director.
The announcement was disclosed in a statement on Friday.
According to the statement, the IMF advisory council comprises global business leaders, policymakers, and academics dedicated to identifying and addressing regulatory barriers to entrepreneurship.
The IMF said Elumelu will be instrumental in ensuring that Africa’s entrepreneurship is central in policy making.
“Elumelu, Africa’s leading advocate of entrepreneurship and whose Foundation has funded, mentored, and trained over 25,000 African entrepreneurs since 2015, champions entrepreneurship as the engine for the economic transformation of Africa,” the statement reads.
“A self-made entrepreneur, Elumelu’s embracing of entrepreneurship is fundamental to his concept of Africapitalism, his belief that Africa’s private sector can and must play a leading role in the continent’s development, making long-term investments that deliver social and economic value.
“Elumelu will be instrumental in ensuring that Africa’s entrepreneurial potential is central to global economic policy making.”
Speaking at the inaugural meeting of the advisory council on March 26, Georgieva said the appointees would share their experiences on how macroeconomic and financial policies “can provide a supportive environment for innovation, entrepreneurship, and productivity — key ingredients for a thriving private sector and strong economic growth”.
Africa’s Micro, Small, and Medium Enterprises, fintech industry, scaling remittances, and cross-border payments will be the driving forces behind the continent’s digital ballooning payments system, which is estimated to reach $1.5 trillion by 2030.
This is according to a MasterCard-commissioned study by Genesis Analytics, which states that the digital payments economy is growing faster on the continent.
This comes as the World Bank says Sub-Saharan Africa has shown significant growth in financial inclusion over the past decade, much of it driven by mobile money account adoption.
Dimitrios Dosis, president, Eastern Europe, Middle East and Africa at MasterCard, comments: “Africa is filled with immense possibilities, and its people have the potential to shape the global economy in the decades ahead.
“MasterCard remains deeply committed to driving digital transformation across the continent, working closely with entrepreneurs, merchants, banks, start-ups, telcos, and governments. By increasing our investments, expanding innovation, and fostering inclusion, we are helping build a more connected and accessible digital future.”
The payment technology company went on to say as a longstanding technology partner to Africa, its continues to strengthen its commitment to the continent’s digital growth through strategic investments, public-private partnerships, and innovation initiatives that drive financial health and economic growth.
In addition, it says trends in Africa signal a strong shift towards digital transactions, with businesses and consumers increasingly embracing contactless solutions, further accelerating economic participation and financial accessibility across the region.
“For over five decades, MasterCard has worked alongside African governments, businesses, and communities to advance financial inclusion and economic development.
“With Africa projected to host nine of the world’s 20 fastest-growing economies, we are focused on leveraging our expertise and a technology to support the continent’s continued digital transformation.
“Our investments today will help build a more resilient economy for the future,” says Mark Elliott, division president, Africa, MasterCard
By fostering collaboration with key stakeholders, MasterCard says it aims to enhance digital connectivity, expand economic opportunities, and enable millions of people and businesses to thrive in the digital economy.
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