The Central Bank of Nigeria (CBN) has announced tougher penalties for banks that process foreign exchange (forex) transactions without proper documentation.
Under the new rules, any authorised dealer bank found carrying out forex transactions without the required supporting documents will be fined N100 million. In addition, the bank will pay N10 million for each transaction involved.
The sanctions are contained in the fourth edition of the Foreign Exchange Manual, which serves as a guide for participants in Nigeria’s forex market.
According to the CBN, the updated manual aims to improve compliance, increase transparency, and strengthen confidence in the foreign exchange system.
Banks are now required to obtain, verify, and keep all necessary documents before releasing foreign currency to customers. Similar documentation requirements apply to forward and swap transactions, where proof of the underlying trade or obligation must be provided before settlement.
For import transactions, importers must continue to provide documents
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