• Tuesday, March 05, 2024
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CBN permits only wire transfers through domiciliary accounts

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Stops banks from accepting foreign currency cash deposits

Henceforth, only wire transfers to and from domiciliary accounts are permissible, the Central Bank of Nigeria (CBN) said in a circular signed by Olakanmi Gbadamosi, director, trade and exchange department.

In its continued efforts to stop illicit financial flows in Nigerian banking system, which aligns with the anti-money laundering stance of the Federal Government, the CBN has officially stopped Deposit Money Banks (DMBs) from accepting foreign currency cash deposits.

This is following the recent statements by banks concerning the large volume of foreign currencies in their vaults and the decision to stop accepting foreign currency cash deposits into customers’ domiciliary accounts, which the CBN sees as a welcome development.

Banks had since last week stopped accepting cash dollar deposit into customers’ domiciliary accounts and this has resulted in a significant improvement in the foreign exchange markets, as the naira has been appreciating against the dollar.

For foreign currency cash lodgement made prior to the date of the circular, the account holder has the option to either withdraw his foreign currency cash or the naira equivalent.

The CBN advised individuals that wish to source foreign currency for eligible and legitimate purposes such as BTA, PTA, medical, mortgage, school fees, goods, among others, to do so through recognised channels with the use of Form ‘A’ for “invisible” and Form ‘M’ for “visible” transactions.