Domiciliary Account: CBN warns banks against misleading information

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The Central Bank of Nigeria has further clarified its directive on domiciliary accounts saying customers can transfer up to $10,000 of funds deposited in cash from their accounts.

The apex bank also in a circular released warned commercial banks against misleading their customers on transactions carried out through domiciliary accounts in the country.

The CBN gave the clarification and warning in a letter dated February 24, 2020 signed by the apex bank’s director, Trade and Exchange Department, Dr Ozoemena Nnaji was addressed to all banks.

The letter reads in part, “Following different interpretations of operations of domiciliary accounts. It has become imperative to clarify the operations of domiciliary accounts as contained in the CBN Foreign Exchange Manual Memorandum 25 provisions under reference.

For the avoidance of doubt, all provisions of the CBN Foreign Exchange Manual has not changed and remains in effect.

“Consequently, all ordinary domiciliary account holders can utilise cash deposits not exceeding $10,000 or its equivalent by telegraphic transfers to fund eligible transactions.

“As a result, all deposits money banks are advised to desist from misguiding their customers. Please ensure strict compliance.”

The CBN had on Sunday said that it had not prohibited the acceptance of foreign currency cash deposits by Deposit Money Banks.

 

 

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