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CBN Lifts Restrictions On Domiciliary Account Operations

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CBN Lifts Restrictions On Domiciliary Account Operations

By Onome Naomi

The Central Bank of Nigeria (CBN) has lifted restrictions of the operation of domiciliary accounts by individuals.

This is contained in a ā€œfurther guidance on operational changes to foreign exchange marketā€ issued by the CBN on Sunday.

Director, Corporate Communications, Dr. Isa Abdulmumin said ā€œthese policy changes aim to promote transparency, liquidity and price discovery in the FX market in order to improve FX supply, discourage speculation, enhance customer confidence and ensure overall stability in the FX marketā€.

The decision to issue new guidance on Forex market operations, Isa said was taken at an extraordinary Bankersā€™ Committee on Friday, June 16, 2023.

According to the new guidance, ā€œordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accountsā€.

Domiciliary account holders are henceforthā€permitted to utilize cash deposits not exceeding USD$ 10,000 per day or its equivalent via telegraphic transfer.

ā€œDeposit Money Banks (DMBs) have now been ordered to ā€œprovide returns to the CBN, including the ā€œpurposeā€ for such transactionsā€.

Other additional changes introduced in the Forex market by the CBN are: ā€œcash 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 regulationsā€.

Read Also:Delta Police Arrest Suspected Vehicle Snatchers, Vandalizers.

The CBN has also decided that it ā€œwill prioritize orderly settlement of any committed FX forward transactions as they fall due in order to boost market confidence further.

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