FG sends EFCC after banks, others over forex malpractices

The Federal Government has ordered the Economic and Financial Crimes Commission, EFCC to go after banks and others alleged to have engaged in forex round tripping.

The Attorney General of the Federation (AGF), Abubakar Malami (SAN), stated this on Wednesday in Abuja, while speaking with journalists, adding that government is ready to prosecute any person suspected to have engaged in foreign exchange round-tripping, among other malpractices in the foreign exchange markets.

According to him, he has directed the EFCC to investigate and confirm information available to government on the nefarious activities of persons and banks involved in such practices within and outside the country.

“Let me restate in the strongest terms that these nefarious malpractices by unscrupulous individuals and institutions will no longer be tolerated. In this regard, measures are already in place to deal with the infractions decisively and relevant security agencies are on the red alert to investigate these infractions and appropriate sanctions shall follow accordingly,” he said.

Read also: Buhari playing double standard on forex for education –Ben Bruce

Malami further said the government had done its preliminary investigations and has proof, adding that EFCC is only expected to commence the probe and prosecution of all the indicted persons and institutions that had made illicit profit from the wide gap between the official rate of the dollar and the parallel market rate.

The minister also disclosed that available reports at the disposal of the government had confirmed suspicions that the current value of the naira was not reflective of economic factors or demand and supply forces alone, but was a deliberate action by some individuals who are undermining the efforts of the President Muhammadu Buhari’s administration to reposition the economy on the path of sustainable growth through diversification and greater accountability.

Continuing, the AGF said the federal government was aware of the insidious activities of certain elements within some strategic national institutions, who rather than exert their regulatory powers, have chosen to use their strong accomplices within the system to manipulate the foreign exchange market for personal corrupt gains to the detriment of the national economy.

Breaking down the offences allegedly committed by these institutions and individuals, Malami said they included forex round-tripping, rendition of false forex utilisation data, non-repatriation of export proceeds, use of forex for non-eligible purposes, consumption of forex transactions with inadequate, expired and or forged documents, and failure to report forex end users who default in the submission of required documents, amongst others.

He added that “government has emphatically restated its priority responses which will be geared towards diversifying the economy, promoting greater accountability within the system by blocking leakages of revenue, undertaking a robust assets recovery process in Nigeria and overseas, and prosecution of all treasury looters in accordance with the law”.

 

 

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