PTA/BTA: Banks Move to Deal with Cheats

*Promise transparent, efficient, stable FX market for legitimate users

Bennett Oghifo

Several banks yesterday sent out notices to their customers, warning against contravening the new Central Bank of Nigeria’s policy on the sale of forex for overseas personal and business travels and spelling out the consequences of fraudulent transactions regarding purchase of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA).

Worried that some people are taking undue advantage of the CBN’s policy on Foreign Exchange, the apex bank had last week directed all banks in the country to publish the names and BVNs of customers who engage in the unscrupulous practices on their websites.

The CBN had said in a circular that defaulters of its forex policy are customers that obtain PTA/BTA from banks, using fake visas, and some others who cancel their flight tickets and fail to return the purchased PTA/BTA within two weeks as stipulated in the customer declaration form signed.

Bank accounts of people involved in shady purchase of PTA/BTA may also be restricted under the crackdown.
The banks that sent out notices yesterday promised to strictly implement the directives of the CBN on the issue, by exposing the identities of customers engaging in forex sharp practices.

The banks also promised to ensure “transparent, efficient, stable foreign exchange market for legitimate users.”
First Bank in a message to its customers said, “We have been directed by the Central Bank of Nigeria to inform all our customers that unethical practices to circumvent the new CBN policy on the sale of forex, such as the presentation of false travel documents, visas, and the cancellation of flight tickets, after purchasing personal travel allowance and business travel allowance, will no longer be tolerated.

“Defaulting customers who present fraudulent travel credentials or cancel their tickets and fail to refund the purchased PTA and BTA within two weeks, as stated in the signed customer declaration form, will have their identities and bank verification numbers published.

“We aim to implement this policy immediately as an organisation that is fully compliant with the Central Bank of Nigeria’s rules and regulations.
“Our bank is committed to partnering with the CBN to ensure a transparent, efficient and stable FX Market that meets the needs of all legitimate users.”

The apex bank in its circular on the forex abuse dated August 30, and signed by the CBN Director, Banking Supervision Department, Mr. Haruna Mustafa, said the forex fraud, if not curbed, presented a risk to the integrity and stability of the FX market.