CBN investigates 71 companies over foreign exchange transactions

The Central Bank of Nigeria (CBN) has launched a massive investigation into foreign exchange transactions by 71 companies after preliminary reviews raised suspicions of possible infractions and contravention of extant foreign exchange laws and rules, according to a news report by The Nation.

Sources close to the apex bank yesterday have confirmed that the investigation of many leading companies in key sectors of the economy including healthcare, food manufacturing, agriculture, oil and gas, energy, financial services, and trading, among others.

This is the largest forex probe in the recent period. The Apex Bank in August launched two separate investigations.

A source explained that the investigation was based on credible suspicion, although no conclusive indictment has been reached, against any of the companies.

The Apex Bank was said to be worried that rather than the companies patronizing banks for their forex transactions, they opted for the black market.

In the light of the heightened security situation in the country, the Apex Bank was alarmed that recourse to the black market by formal sector operators may be a conduit for illegal transactions, including transmitting funds to terrorists, money laundering, under declaration and shortchanging of extant government rules and policies, among others.

A source said the Apex Bank was ready to clamp down on any company found to have contravened any of the extant laws and policies on forex.