Court Empowers CBN to Freeze Five Accounts over Forex Policy Violation


Posted by JUSTOURS
Five accounts with First Bank of Nigeria and the United Bank of Africa (UBA) will be affected as a Federal High Court has permitted the Central Bank of Nigeria to freeze the accounts due to Forex policy violation.
CBN was grated the permission by Justice Sule Hassan who presided over the court after listening to Mrs. Ibunkun Oyinloye a lawyer from the CBN who argued the ex-parte application filed before the court, Monday.
Four of the accounts were allegedly housed by First Bank, while UBA Plc housed only one, belonging to Raufu Folashade, Yusufu Ali, Ali Yusufu and Ali Yusufu, with account numbers;
203099182; 100044036; 3099129636;
2029112256; 2096423659, with BV Numbers; 22312630393 and 22203138106, respectively.
Oyinloye, who held the brief for Mr. Adekola Mustapha, by the CBN Governor, Godwin Emefiele, told the court that the freezing orders sought, is for 180 days, to enable CBN conclude investigations on the respondents’ accounts. She also told the court that the alleged illegal activities of the dealers had continually undermined the apex bank’s “efforts to maintain a stable foreign exchange regime, which causes significant economic and financial instability to the Nigerian economy.”
Meawhile, CBN’s lawyer told Justice Hassan that there was an urgent need to freeze the five bank accounts because “there is a strong probability that the respondents may tamper with the funds currently in their various bank accounts, which are strongly connected to or being strongly suspected to be proceeds of the serious infractions of the foreign exchange market regulations”.
CBN in a six paragraph-affidavit in support of the ex parte application, deposed to by Afolabi Oyeledun, a litigation manager in Messr Adekola Mustapha and Co., stated that a preliminary investigation revealed that the respondents applied the foreign exchange obtained from the CBN, through their various bank accounts, to fund transactions in some prohibited items, leading to serious infractions and violation of the CBN circular, TED/FEM/GEN/01/010 of June 23, 2015.”
The deponent stated that the activities of the respondents which are now under investigation constitute serious risk to the financial stability of the foreign exchange market and the economy at large.
Justice Hassan, while conceded to the CBN’s requests, adjourned the matter till
September 22, 2020, for report on investigation.
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