CBN Lifts Restrictions On Domiciliary Accounts, Roles Out Six Guidelines

The Central Bank of Nigeria (CBN) says cash deposits into domiciliary accounts will not be restricted, and customers “shall have unfettered and unrestricted access to funds in their accounts”.

Naija News reports that the CBN disclosed this in a statement issued after a meeting with the bankers’ committee on Sunday.

The bankers committee meeting was meant to provide further guidance to deposit money banks (DMBs) on the recent operational changes to the foreign exchange market and to discuss the implementation and implications of the policy changes for the banking public.

According to the Director, Corporate Communications, Dr. Isa Abdulmumin, the CBN, in line with deliberations at the meeting, provided further guidance to Deposit Money Banks (DMBs) as follows:

1. All visible and invisible transactions (medicals, school fees, BTA/PTA, airline
   and other remittances) are eligible for the Investors’ and Exporters’ (I & E) window.
2. DMBs shall ensure expeditious processing of all eligible invisible transactions on behalf of their customers using the applicable rate at the I & E window.
3. Ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts. Domiciliary account holders are permitted to utilize cash deposits not exceeding USD$ 10,000 per day or its equivalent via telegraphic transfer. DMBs shall provide returns to the CBN, including the “purpose” for such transactions.
4. Cash deposits into domiciliary accounts will not be restricted, subject to DMBs
   conducting proper KYC, due diligence and adhering to the spirit and letter of
   extant AML/CFT laws and other relevant rules and regulations.
5. The CBN will prioritize orderly settlement of any committed FX forward
   transactions as they fall due in order to boost market confidence further.
6. The Bank will normalize its CRR maintenance processes and ensure equity in
   its implementation across the banking industry. The CBN will continue to engage stakeholders and issue further guidance as it implements the ongoing reforms