2 Banks Being Investigated By House Of Representative For $28 Billion Foreign Exchange Leaks

Between 2010 and 2019, the House of Representatives launched an investigation into the actions of two money deposit banks, alleging underpayment of Withholding Tax (WHT) and Value Added Tax (VAT), as well as foreign exchange leakages totaling $28.048 billion.

According to the report of the House of Representatives Committee on Finance, Banking, and Currency’s first phase investigation, one of the banks allegedly underpaid WHT and VAT worth $2,838,296,330.74 and was involved in foreign exchange leakages totaling $25,199,851,112.97 during the period under consideration.

Another bank was charged with $9,963,335.72 in tax and foreign exchange violations, according to the article.

Chairman of the House Committee on Finance, Hon. James Faleke, voiced concern at the investigative hearing about the gross violation of existing financial norms and pertinent provisions of the 1999 Constitution (as amended).

“The Committees wish to inform your bank of the conclusion of its first phase of investigation into your bank’s level of compliance with existing laws and regulations, with respect to the administration and management of foreign exchange transactions’ inflows and outflows as they relate to: Unpaid taxes (VAT & WHT) on applicable foreign transfer payments by your bank and customers for reason o

“Foreign exchange leakages resulting from mismanagement of capital inflows and capital outflows resulting from any validly issued certificate of capital importation. Verification and confirmation of the use of the Naira proceeds of capital importation in any taxable transactions from your customers’ bank statements. Confirmation and verification of the use of Foreign Exchange purchased by your bank from various sources, such as Capital Importation, CBN, Interbank, Export profits (Oil and Non-Oil Domiciliary accounts, Over the Counter, etc.) in your bank’s sales blotters.