CBN sets January 31 deadline for FX players to submit compliance report

The Central Bank of Nigeria (CBN) has mandated participants in the foreign exchange (FX) market to ensure the submission of a compliance report on the Nigeria FX Code on or before January 31, 2025.

CBN says this will help boost ethical practices, governance, and transparency in the FX market.

“Market Participants will be required to conduct a self-assessment and submit to the CBN a report on the institution’s level of compliance with the FX Code by January 31, 2025. All Market Participants will thereafter be required to submit to CBN a detailed compliance implementation plan that is approved and signed by its Board along with the extracts of the Board meeting,” the FX Code document which was released on Monday stated.

The Nigeria FX Code took effect on December 2, 2024.

The Code affects authorized dealers licensed under the CBN Act 2007, the Bank and Other Financial Institutions Act 2020, and other institutions engaged in wholesale FX business.

The directive stipulates that market participants perform a self-assessment and submit a compliance report on their obedience to the code.

Also, quarterly compliance reports must be filed with the apex bank’s Financial Markets Department (FMD), with these reports due within 14 days of the end of each quarter, with the first report expected by March 31, 2025.

Penalties for non-adherence include: Monetary penalties, as provided under the CBN Act 2007 and BOFIA Act 2020 and; administrative sanctions.