Central Bank of Nigeria has rolled out a stringent new measure to strengthen compliance in the foreign exchange market. Banks that process foreign exchange transactions with inadequate or incomplete documentation will now face a penalty of N100 million for each violation.

This policy aims to curb irregularities, enhance transparency, and ensure that all forex dealings strictly adhere to regulatory standards.

The directive reflects the apex bank’s ongoing efforts to sanitize the foreign exchange sector, reduce abuse, and promote best practices among financial institutions.

By imposing this significant financial sanction, the Central Bank seeks to deter laxity in documentation procedures that could otherwise expose the system to money laundering risks, capital flight, or other forms of economic sabotage.

Industry stakeholders believe this move will compel banks to tighten their internal controls and verification processes when handling forex transactions for customers and businesses.

This latest regulatory action comes amid broader reforms in Nigeria’s monetary and foreign exchange policies aimed at stabilizing the naira and restoring confidence in the financial system.

Analysts expect the heavy penalty to encourage greater discipline across the banking sector while supporting the Central Bank’s commitment to a more transparent and accountable foreign exchange regime.