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CBN Introduces Strict Rules On Deposit Of FX Cash Into Dom Account

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CBN Introduces Strict Rules On Deposit Of FX Cash Into Dom Account

The Central Bank of Nigeria (CBN), says forex cash (fx cash) lodgements into domiciliary accounts can only be done by the account owners.

Naija News understands that an internal memo issued by the CBN maintained that the new guidelines are necessary to review the utilisation of inflows into customers domiciliary accounts.

According to the internal memo sighted by TheCable, “Forex inflows cannot be credited to customers until the legitimacy of funds is established,” the document read.

“They can have unfettered access by telegraphic transfers up to a limit of $40,000 monthly for payment of medical bills, school fees, subscription to professional bodies subject to existing CBN guidelines.

“Transfers from one customer to another is prohibited. Transfer within related companies is allowed subject to a limit of $50,000 per month.”

The CBN internal memo which had the new rules means if a traveller visited the UK and urgently needs some FX to fund debit card, the person will have to return to Nigeria, buy the dollar, pay into your card and return to the UK to continue your shopping.

According to the report, the CBN internal memo recommended that proceeds from non-oil exports should be sold to banks, used for repayment of dollar term loans, and self-utilisation for trade transactions for LC, bills and Form A.

Also, oil export proceeds from E&P companies are to be used to pay contractors and service providers employed by the oil companies in addition to the recommended uses for non-oil FX proceeds, the memo added.

On the other hand, offshore FX inflows, FX inflows from other Nigerian banks and internal account to account FX transfers sourced from offshore inflows are to be used for trade transactions subject to eligibility for E-Form M.

The document showed that: “Upon confirmation of the legitimacy of the inflows, customers can have unfettered access, subject to a maximum of $50,000,” the document read.

“Utilisation for trade transactions subject to processing of eligible trade transactions using E-Form M. Payment for services must be backed with demand note from offshore beneficiary and other regulatory documents.

“Related party transfers are allowed to the maximum of the inflow received. The transfer request should be backed by a signed instruction from the account holder.”

The CBN memo added that the payment of government fees and levies are also allowed to the maritime, oil and gas, aviation. government parastatals and export processing zones.

Meanwhile, the CBN has been implementing various policies to conserve Nigeria’s forex after the economy was hit by double shocks caused by the COVID-19 pandemic and lowered oil prices. It recently announced that it would no longer provide forex for the importation of maize and is currently investigating some gaming companies for alleged forex infractions.

Source: Naija News

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