By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)- The Central Bank of Nigeria (CBN) has directed the use of Bank Verification Number (BVN) for all foreign exchange transactions with effect from November 01, 2015.

The CBN gave this directive in a circular with reference number FPR/DIR/CIR/GEN/05/015 dated October 21, 2015 and signed by Kevin Amugo, director, Financial Policy and Regulation Department of the CBN.

The CBN says it’s in continuation of efforts to stabilize the foreign exchange market, stem the rampant cases of foreign exchange leakages and illicit money and transfers out of the country, the use of the BVN for all forex dealings.

Parts of the circular read thus: “All Banks are licensed BDC’s operating in Nigeria as well as general public are, therefore put on notice that with effect from Nov 1, 2015, ALL customers desiring to purchase foreign exchange through all available channels in Nigeria MUST provide their BVN’s, which shall be validated by the CBN Authorised Foreign Exchange Dealer through the Nigerian Interbank Settlement System (NIBBS) platform before the transactions are consummated.

For the avoidance of doubt, the CBN shall also from November 1, 2015 discontinue sale of Foreign Exchange to the BDC’s that had not availed it, the BVN’s of all of its Directors.

Any authorised foreign exchange dealer that fails to provide the required information in its Returns or provides wrong BVN would be penalized and this may include determination of the foreign exchange dealership authorisation.