• Monday, March 04, 2024
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CBN permits only wire transfers through domiciliary accounts


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 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 result in a significant improvement in the foreign exchange as naira has been appreciating against the dollar.

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

The CBN advice 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 recognized channels with the use of Form ‘A’ for “invisible” and Form ‘M’ for “visible” transactions.