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CBN bars crypto bank account operators from cash withdrawal

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11 months ago

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Cash withdrawals will not be possible from accounts opened for virtual and digital assets transactions, the Central of Nigeria has disclosed.

Withdrawals from these accounts will only be possible by transfer or through a manager’s cheque, the apex bank explained. It revealed this in a new ‘Guidelines on Operations of Bank Accounts for Virtual Assets Service Providers.’

According to the bank, an account opened under its new guidelines will only be used for transactions on virtual/digital assets and not for any other purpose.

The guideline read in part, “No cash withdrawal shall be allowed from the account. No third-party cheque shall be cleared from the account. Except for settlement of a virtual/digital assets transaction which shall be done through a transfer to another designated account, the withdrawal shall be only through a managers’ cheque or transfer to an account.”

In a December circular titled, ‘Circular to all banks and other Financial Institutions guidelines on operations of bank accounts for Virtual Assets Service Providers,’ with reference number FPR/DIR/PUB/CIR/002/003, and signed by the Director, Financial Policy and Regulation Department, Haruna Mustafa, the banking regulator announced a policy change on crypto assets and directed banks to begin to aid crypto transactions.

In its new policy direction, the bank stated that it was more open to the idea of regulation rather than its earlier position of the restriction of crypto assets from the formal banking sector.

The guideline, published alongside the circular, is meant to serve as the framework for the reintroduction of crypto into the formal banking sector.

Commenting on the guideline, the CBN said, “The Guidelines shall apply to banks and other financial institutions under the regulatory purview of the CBN.”

Part of the objectives read, “Provide minimum standards and requirements for banking business relationships and account opening for Virtual Assets Service Providers in Nigeria.”

Based on the guidelines, financial institutions are now allowed to undertake the following activities in their operations of accounts for Virtual Assets Service Providers including, opening designated accounts, the provision designated settlement accounts and settlement services, acting as channels for FX flows and trade, and any other activity that may be permitted by the CBN from time to time.

Commenting on how virtual asset providers can open accounts, the apex bank noted, “From the commencement of these Regulations, financial institutions shall not open or permit the operation of any account by any person or entity to conduct the business of virtual/digital assets unless that account is designated for that purpose and opened in line with the requirement of these Guidelines.

“The designated account shall only be opened with the approval of senior management of the FI.”

The new CBN guideline further provides an extensive list of other requirements aimed at protecting the financial system and customers from uncertainty and fraud risks.

Hammering on the need for financial institutions to adhere to its guidelines, the apex bank highlighted that erring banks could get their licence suspended.

The document read in parts, “Notwithstanding the powers of the CBN under the BOFIA 2020 and in addition to the use of remedial measures in these Guidelines, the CBN may take any or all of the following sanctions against a Fl, its board of directors, officers or staff for failure to comply with any of the requirements of these Guidelines:

“Prohibition from opening any further designated account; Monetary penalty not below the sum of 2,000,00O.00 against the FIs, members of its board, senior management, and any staff, for any infraction. Suspension of the operating licence of a Fl.”

When the CBN announced its policy shift on crypto, the Lead Partner and Head of Blockchain and Virtual Assets Practice at Infusion Lawyers, Senator Ihenyen, told The PUNCH, “Thankfully, our regulators will now work together to ensure consumer protection and investor safety.

“Nigeria can no longer afford to keep pushing digital assets underground, for obvious economic and security reasons, especially when you are number on in crypto adoption in Africa and a leading market in the globe.”

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JUST IN: Tinubu returns to Abuja after France, South Africa trips

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4 hours ago

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December 4, 2024

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President Bola Tinubu has returned to Abuja from his visit to France and South Africa.

The Airbus A330 which conveyed Tinubu, arrived at the Presidential Wing of the Nnamdi Azikiwe International Airport, Abuja, at 9.10pm.

This concludes his 33rd foreign trip since assuming office 18 months ago.

Tinubu was in France from November 27 to December 1, 2024, for a three-day state visit on the invitation of his French counterpart, Emmanuel Macron.

At the Palais des Elysée in Paris, Tinubu and Macron signed two agreements to ensure a partnership on developing critical infrastructure and the long-term sustenance of agriculture and food security.

They also witnessed the signing of the agreement by the United Bank for Africa Group Chairman Tony Elumelu and Mr. Antoine Armand, the French Minister of Economy, Finance and Industry for the bank to commence operations in Paris.

Zenith Bank also inaugurated its services in the country during the visit.

On Monday, December 2, Tinubu departed France for South Africa.

He, alongside President Cyril Ramaphosa, co-chaired the 11th Bi-National Commission between Nigeria and South Africa in Cape Town.

At the opening of the event, on Tuesday, the President argued that Nigeria and South Africa share a collective destiny to collaborate for the good of the African continent.

Therefore, he said both countries must intensify cooperation across various sectors, warning that the implementation, not the mere signing of MoUs, constitutes the success of the partnership.

He also sought South Africa’s support to ensure Nigeria’s membership in the G20 nations, a premier international forum for economic cooperation, bringing together the world’s major advanced and emerging economies.

In response, Ramaphosa announced that South Africa will “keenly” support the bid of Nigeria, “a valued sister country,” to become a member of the G20 club of the world’s major economies.

Ramaphosa said other key African countries should also be admitted to the club “so that we can raise the voice from Africa, the neglected continent for the longest time.”

He noted that South Africa had been the lone voice for Africa in the G20 before the admission of the African Union last year after his country had lobbied for it to become a member.

Nigeria and South Africa also operationalised the Joint Ministerial Advisory Council on Industry, Trade and Investment to enhance economic cooperation between the two leading African economies.

Tinubu was received at the airport by the Minister of the Federal Capital Territory, Nyesom Wike, and the Secretary to the Government of the Federation, George Akume, among other senior government officials.

So far, the president has logged 139 days abroad, visited 17 countries, and accumulated about 304 flight hours.

Countries visited include Paris, France (five times); Malabo, Equatorial Guinea; London, the United Kingdom (four times); Bissau, Guinea-Bissau (twice); Rio de Janeiro, Brazil; Nairobi, Kenya; Porto Norvo, Benin Republic; The Hague, Netherlands; Pretoria and Cape Town, South Africa; Accra, Ghana; New Delhi, India; Abu Dhabi and Dubai in the United Arab Emirates; New York, the United States of America; Riyadh, Saudi Arabia (twice); Berlin, Germany; Addis Ababa, Ethiopia; Dakar, Senegal and Doha, Qatar.

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Federal Government Is Not Investigating Air Peace – FCCPC

Published

8 hours ago

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December 4, 2024

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The Federal Competition and Consumer Protection Commission, FCCPC says its invitation to Air Peace is simply for an inquiry to understand its price methodology and respond to consumers complaints.
The Director, Surveillance and Investigation, Mrs. Boladale Adeyinka said neither the airline nor the chairman, Dr. Allen Onyema is under any investigation, but that the Commission invited Air Peace based on complaints from customers for the airline to educate them on its price methodology.
“Thank you so much for honouring our invite in person. We have gained more insight into your operations. Just again to reiterate that it is not an investigation, it is an enquiry to understand and again, find out based on consumer complaints.”
Adeyinka, who stated this on Tuesday in Abuja when the chairman of Air Peace, Dr. Allen Onyema led some members of his team to honour the invite extended to the airline, commended Air Peace for the insights made on its operations.
“Thank you also for bringing your expertise and insights to the industry, it is a good one for us, it is a good one for Nigerian consumers. This is our own, we are happy that you are doing well because if the consumers are saying that this is our aircraft, it means that ownership has moved from you to every Nigerian.”
She noted that the Commission exists for the good of businesses, customers and the operators, stressing that business stability and sustainability are core to their mandate. “We will review the situation and intervene where we can, not just for Air Peace customers but generally for all air passengers and other consumers of aviation services,” adding that this is part of the Commission’s efforts at bringing competitiveness in the market.
The FCCPC director also commended Dr. Onyema for his love for the country and philanthropic spirit and advised him not to let anything deter him from his services to humanity.
Earlier the Chairman of Air Peace, Dr. Onyema explained that fare pricing in the aviation sector is a global thing but lamented that the fare regime in Nigeria is not commensurate to the cost of putting an aircraft in the air, thus the reason why airlines frequently go under in Nigeria.
Dr Onyema argued that the choice before Nigerians going forward would be flying safe and sustainability of the airlines, which requires proper pricing based on global standards or watch the airlines go under due to poor pricing. “We need flight safety in Nigeria. For us at Air Peace, safety is a pre-condition rather than just a priority.”
He pointed out that the cost of flying anywhere in the world is priced at between $250 to $300 for an hour and in some cases even as high as $540, adding that this is what could pass for fair pricing, which Air Peace does not follow because of the low purchasing power of Nigerians.
Dr Onyema argued that the addictive nature of aviation business and patriotism have kept him in the business, stressing that if Air Peace is to factor the numerous charges involved in its operational cost, not many Nigerians would afford to fly.
He stated that the high cost of interest on loans from banks ranging from 33 to 35 percent, high insurance cost put at about $12m annually, an amount which could insure about eight aircraft abroad, volatility in the cost of aviation fuel, other sundry charges and replacement of parts, which are all sourced in dollars, make prices of tickets very high.
The Chairman of Air Peace also pointed out that it costs about $4,000 for landing per hour for an airbus plane, just as there is a cost for engine flight circle per hour, stressing that these costs if factored into operating cost will deny a number of Nigerians the opportunity of flying.
“What happens abroad is far better but here, it is a different ball game. When you calculate all these costs, you will find out that when you fill your plane with passengers, you will still have not broken even, though 70% is given as the breakeven point because the fares are not just right.”
He further highlighted that in other climes the cost of operations accounts for 40 percent component of the business but regretted that the case is different in Nigeria as the cost is much higher even up to 70 percent.
Dr Onyema noted that he has served Nigeria well at critical times in helping to protect the image of the country during COVID-19, and other times when some Nigerians were stranded abroad at no cost to the nation, stressing that nothing will kill the patriotic spirit in him.

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Just In: Nigerian Activist, Dele Farotimi Sent To Prison 24 Hours After Arrest..

Published

15 hours ago

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December 4, 2024

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Popular human right activist, Dele Farotimi has been sent to prison following his arrest yesterday in Lagos.

 

Farotimi was arrested in Lagos and whisked to Ekiti state for an allegation of defamation following a petition written against him by Aare Afe Babalola, SAN.

 

 

Aare Afe Babalola had accused Dele Farotimi of defaming him in a video he shared about corruption in the judiciary.

 

While giving update about the issue on Twitter, Omoyele Sowore confirmed that Dele Farotimi has been sent to prison.

 

“The Nigerian justice system is whack, as expected @DeleFarotimi has been hurriedly prosecuted and sent to prison after being denied bail by a judge in Ado Ekiti pre-arranged to do the same.

 

 

According to Sowore, “The Nigerian Police, Chief Afe Babalola SAN, and the judicial officers had it all planned out even before they sent the goons from Ekiti state command RRS (formerly SARS) to abduct him. The case adjourned till December 10, 2024. #RevolutionNow, I mean it. Nigeria is overdue for a REVOLUTION! “

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