The Central Bank of Nigeria (CBN), says cash deposits into domiciliary accounts will no longer be restricted.
It, however, said such transaction would be subject to Deposit Money Banks (DMBs), conducting proper KYC, due diligence and adhering to the spirit and letter of extant Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) laws and other relevant rules and regulations.
CBN Director of Corporate Communications, Dr. Isa Abdulmumin, in a statement issued Sunday said the directive was in line with deliberations at the extraordinary Bankers’ Committee meeting held on Friday.
The apex Bank said these policy changes were aimed at promoting 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 market.
It added that all visible and invisible transactions (medicals, school fees, BTA/PTA, airline and other remittances) are eligible for the Investors’ and Exporters’ (I & E) window.
The apex bank noted that DMBs will ensure expeditious processing of all eligible invisible transactions on behalf of their customers using the applicable rate at the I & E window.
It stressed that ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts.
It said: “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.
“Cash deposits into domiciliary accounts will not be restricted, subject to DMBs conducting proper KYC, due diligence and adhering to the spirit and letter ofextant AML/CFT laws and other relevant rules and regulations.
“The CBN will prioritize orderly settlement of any committed FX forward transactions as they fall due in order to boost market confidence further.”
The apex Bank noted that it will normalize its CRR maintenance processes and ensure equity in its implementation across the banking industry.
It assured that it will continue to engage stakeholders and issue further guidance as it implements the ongoing reforms.