Bureau De Change Operator Bags Three Years Imprisonment For Fraud

Bureau De Change Operator Bags Three Years Imprisonment For Fraud
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The Katsina State High Court has convicted and sentenced one Sale Elleman to three years imprisonment for offences of criminal breach of trust, cheating, misappropriation, and diversion of funds.

The convict’s journey to prison began when the Economic and Financial Crimes Commission (EFCC) received a petition from one Salisu Tambaya who alleged that Elleman, a Bureau de Change (BDC) operator, allegedly induced him in parting with the sum of N13million under the pretext that the money would be invested in the BDC business.

A statement by the EFCC spokesman Wilson Uwujaren on Friday revealed that Justice Abdullahi Yusuf convicted and sentenced Elleman in his ruling on March 8.

The charge read: ”That you Saleh Mohammed Elleman between 27th May, to 25th June, 2014, in Katsina within the judicial division of High Court of Justice of Katsina State being entrusted with certain property to wit the sum of N13,000,000.00 by one Salisu Tambaya, committed Criminal Breach of Trust and that you thereby committed an offence punishable under section 312 of the Penal Code”.

Upon his arraignment, he pleaded not guilty to the charge.

After diligent prosecution, Justice Yusuf was convinced that the convict was entrusted with the property in question, based on the testimonies of witnesses and the exhibits tendered.

The judge held that “although the accused claimed to have invested the money, there was no evidence as to when the business commenced.”

“No any record whatsoever of the purported business transactions provided; it is in evidence that the accused could not give a satisfactory account of the said money,” he added.

Justice Yusuf consequently found the accused person guilty and sentenced him to three years imprisonment without an option of fine.

The convict was also ordered to restitute the sum of N12, 200,000 (twelve million two hundred thousand naira) to the complainant.

700 Bureau De Change Operators Under Threat

Naira, dollar, Market FX market

More than 700 Bureau De Change operators are inactive at the Central Bank of Nigeria forex window.

President of the Association of Bureau De Change Operators of Nigeria, Mr Aminu Gwadabe, says the development has rendered the BDCS under threat as uncompetitive exchange rate continues to hit their bottom line, and place the sustainability of their business in jeopardy.

According to Gwadabe, the regulator sells dollars to the BDCS at a higher rate compared to what the CBN sells to commercial banks.

He added that the practice was affecting their business because both the BDCS and banks were targeting the same market segment and customers.

Lawyer Asks EFCC To Reveal Owners Of Recovered Cash

Lawyer Asks EFCC To Reveal Owners Of Recovered CashA legal practitioner, Mr Isaac Anumudu, has called on the Economic and Financial Crimes Commission (EFCC) to reveal the identities of the owners of all the moneys being discovered by the Commission.

Mr Anumudu made the call on Sunrise Daily, in reaction to the series of cash recoveries made by the EFCC in the past few weeks, one of which was the discovery of a huge sum of money in an apartment in Ikoyi area of Lagos State.

He believes that the inability of the anti-graft agency to clarify the ownership of the recovered cash in Ikoyi is giving room for suspicion.

The lawyer wondered why the whistleblower could not reveal critical information as to who dropped the money and how it got to the apartment.

“First of all you look at the recoveries, the way and manner they came.
There is a whistle blowing 49 million in Kaduna airport, how come someone would carry that humongous amount of money in Naira and not in Dollars to an airport?

“Why did the whistleblower identify and was able to blow whistle as to where the fund is, without information as to who dropped the money and how it got there?” Anumudu questioned.

He further criticised the funds found in a Bureau De Change at the Balogun Market in Lagos, stressing that the place was meant for exchange of all forms of currency.

“You tell me you found a million of Dollars in a Bureau De Change, what do they sell in a Bureau De Change? pure water, vegetable, cosmetics, provisions, no.

“What goes on in a Bureau De Change is exchange of all forms of currency, Dollar, Naira, Euro, Pound.

“So telling me you found, you didn’t tell us how that became illegal, you didn’t tell us whom you are pursuing, what lead you are pursuing that led you to finding that kind of money, you now suspect it was money gotten from corrupt practices.

“What whistle are you blowing if you whistle that you found law books in my office as a lawyer? There is nothing illegal in finding money in a Bureau De Change”, Mr Anumudu stated.

CBN To Increase Dollar Sales To BDC Operators

CBN To Increase Dollar Sales To BDC OperatorsThe Naira is expected to appreciate in the following week, after the Central Bank of Nigeria (CBN) says it will increase dollar sales to Bureau De Change (BDC) operators.

Experts expressed hope that the development would improve liquidity and also help to boost the Naira.

The local currency currently trades at 410 Naira to a dollar on the parallel market, compared to 398 Naira it traded last week.

Following the increase in demand for dollars, the Naira depreciated further in the parallel market as the exchange rate rose from 407 Naira to 410 Naira per dollar.

Naira Expected To Rise Next Week

Naira, dollar, Market FX marketThe Naira is expected to appreciate on the street next week, following the Central Bank of Nigeria’s plan to increase dollar sale to retail currency bureaus.

The Central Bank is planning to raise dollar sales to Bureau De Change to $40,000 from the present $20,000, which will improve liquidity and help support the local currency.

The local currency was quoted at 410 to the dollar on the street, compared with 398 to the dollar, last week.

At the inter-bank market the local unit closed at 306.10 to the dollar on Wednesday compared with 306.20 last week.

Court Orders Temporary Forfeiture Of Funds Recovered In Ikoyi

Court Orders Temporary Forfeiture Of Funds Recovered In IkoyiA Federal High Court in Lagos has ordered the temporary forfeiture of the funds recovered by the Economic and Financial Crimes Commission (EFCC) from an apartment in the Ikoyi area of Lagos State.

In his ruling on Thursday, Justice Muslim Hassan ordered that the 43 million dollars, 23 million Naira and 27,000 pounds be temporarily forfeited to the Federal Government of Nigeria.

The judge gave till May 5, 2017 for any interested party in the funds to show cause why the money should not be permanently forfeited to the Federal Government.

The funds were recovered on Wednesday, following a whistle-blower’s confidential alert received by the Lagos Office of the anti-graft agency regarding some suspicious movement of bags in and out of the apartment.

The discovery came days after the EFCC announced the recovery of 547,730 euros; 21,090 dollars and 5,648,500 Naira from a Bureau de Change operator in Balogun Market, Lagos.

BDC Set To Introduce Online Exchange Rate Platform

BDC Set To Introduce Online Exchange Rate PlatformNigeria’s Bureau De Change (BDC), operators, are set to introduce an online exchange rate platform and have also fixed the Naira to Dollar reference rate at 399.

The BDC Acting President, Mr Aminu Gwadabe, explained that the platform would help reduce the gap between the official inter-bank rate and parallel market rates, as well as eliminate multiple exchange rates in the country.

This was revealed at a press conference in Lagos, where Mr Gwadabe confirmed plans by licensed fx retailers to launch the online platform for thousands of its members starting from the end of January.

CBN Denies Review Of Foreign Exchange Law

forex, CBN, bureau de change, exchange rate, Central bankThe Central Bank of Nigeria (CBN) has denied plans to amend the Foreign Exchange Act.

In a statement, the regulator says it remains committed to safeguarding the international value of the country’s legal tender.

It added that the plans of a 20% fine for any holder and confiscation of funds in domiciliary accounts of individuals is not true.

The news broke over the weekend that the federal government and the CBN were planning to stem volatility in the foreign exchange market with such plans.

The Nigerian Senate on Monday expressed surprise at the recommendation which was made by the Nigerian Law Reform Commission.

The commission recommended a review of the Nigerian Foreign Exchange Act to accommodate punishment for persons holding on to foreign currency.

The commission wants the law to empower the the Central Bank of Nigeria to jail people for up to two years or fine them for 20% of the amount of the foreign currency held in their possession for more than 30 days.

But the Senate’s through its spokesperson, Senator Aliyu Abdullahi, stated that the measure was disruptive and counter-productive and would undermine many of the reform efforts already underway in the legislature and by government ministries intended to boost investors’ confidence.

The proposed changes are said to be intended to help control capital flows and prevent foreign exchange from being taken out of Nigeria.

CBN Raises BDC Exchange Rate To N385 Per Dollar

forex, CBN, bureau de change, exchange rate, Central bankThe Central Bank of Nigeria has raised the exchange rate for bureau de change operators to 385 naira per dollar.

This move is to encourage Nigerians in diaspora to use official channels to transfer earnings back home.

Prior to the announcement, the CBN allows BDCs to buy at 375 naira per dollar and sell at 381 naira per dollar.

In the meantime, the naira appreciated at the interbank foreign exchange market in response to intervention by the CBN.

The regulator sold 1.5 million dollars to stabilize the interbank exchange rate.

The local currency appreciated to 305 naira 5 kobo at the interbank and 455 naira to the greenback at the parallel market.

Meanwhile the CBN is also expected to license 20 new international money transfer operators in the coming weeks to handle an estimated 21 billion dollars annual diaspora remittances into the country.

This is part of efforts to stabilise the foreign exchange market.

The President of the Bureau De Change Operators of Nigeria, Mr Aminu Gwadabe, believes the CBN’s policy on IMTOs will boost diaspora cash inflow into the country and force the dollar rates against the naira down.

The CBN had in August 31, licensed 11 IMTOs in addition to Western Union, Moneygram and RIA, which were earlier cleared by the regulator.

Recapitalisation: CBN Clears 128 BDCs

BDCsData released by the Central Bank of Nigeria show that 2,964 bureau de change operators have scaled through the recapitalization process mandated by the regulator.

According to a circular posted on the CBN website, 128 BDCs recapitalised in the last one week.

The apex bank is expected to refund nearly 100 billion naira to all the BDCs that paid the mandatory 35 million naira caution deposit which was scrapped last week.

In the meantime, the President, Association of Bureau De Change Operators of Nigeria, Mr Aminu Gwadabe described the cash refund as a welcome development, as it will go a long way in boosting the capacity of operators to stay in business.


LCCI Demands Comprehensive Framework For Forex Market

LCCIThe Lagos Chamber Of Commerce and Industry (LCCI) has asked the Central Bank to come up with a comprehensive framework for the foreign exchange market. 

In a statement released by the chamber on Sunday, the LCCI noted that the restrictions placed on 41 items in the forex market were no longer required, especially at a time when the regulator’s official forex window has been closed.

The LCCI explained that the normalisation of the foreign exchange market is very crucial at this period, as the impact is being felt across all levels of investments in the country.

The chamber suggested that sources of foreign exchange including diaspora remittances, export proceeds, forex sales by foreign investors and multinational companies as well as forex sales by donor agencies should be allowed to be freely traded in the autonomous market.

CBN Stops Sales of Forex To Bureau De Change

CBN on foreign exchange The Central Bank of Nigeria (CBN) has stopped the sale of foreign exchange to Bureau De Change (BDC) operators.

Addressing reporters in Abuja on Monday, the Governor of CBN, Mr Godwin Emefiele, said the operators would now be left with the option of getting foreign exchange from autonomous sources.

He stated that the apex bank would monitor the trade operations of the BDCs to ensure they do not violate the Money Laundering Act

According to the CBN boss, commercial banks have also been authorised to accept cash deposits of foreign exchange from their customers.