FOREX: CBN Directs Banks to Publish Names of PTA/BTA Defaulters

Oru Leonard

The Central Bank of Nigeria (CBN), has directed all banks to publish names of defaulters of its policy on sale of foreign exchange for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA).

The CBN gave this directive in a letter to all banks dated 30th August 2021 and titled, “Publication of Names of Defaulters of the CBN Policy on Sale of FOREX for PTA/BTA”.

The letter which was signed by the Director, Banking Supervision Department, Haruna B. Mustafa, disclosed that, “The CBN has received and noted with concern reports of sharp practices by some unscrupulous customers to circumvent the new CBN policy on the sale of forex for overseas personal and business travel.

“Some of these unwholesome practices include the use of fake visas and cancellation of air tickets after purchase of PTA/BTA. This trend, if not curbed, portends risk to the integrity and stability of the forex market.

“Consequently, further to the various measures already put in place, all banks are hereby directed to publish on their websites the names and BVN of defaulting customers who present fake travel documents or cancel their tickets and fail to return the purchased PTA/BTA within two (weeks) as stipulated in the customer declaration form signed by them”.

Implications:

Customers involved in fraudulent practices such as presenting fake visas or cancelling airline tickets after receiving PTA/BTA and failing to return the funds received to the bank within 2 weeks will have their details published (name and BVN) on the banks’ website.

In line with this, banks are now encouraging their customers to adhere to all guidelines as directed.a