Cash Deposit Into Domiciliary Account Banned By Central Bank Of Nigeria (CBN)
On Wednesday 5th of August, 2015, the Central Bank of Nigeria banned the payment of cash into domiciliary accounts in the country. Signed by the Director of Trade and Exchange, CBN, Olakanmi Gbadamosi, the central bank said its action was as a result of recent reports by individual banks suspending the payment of foreign currencies into domiciliary accounts.
Gbadamosi wrote, “The Central Bank of Nigeria has considered the recent statements by Deposit Money 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 as a welcome development.
“In other to curb corruption and money laundering, the Federal Government, the CBN hereby prohibits from the date
of this circular the acceptance of foreign currency cash deposits by
DMBs.
“For foreign currency cash lodgements
made prior to the date of this circular, the account holder has the
option to either withdraw his or her foreign currency cash or the Naira
equivalent. For the avoidance of doubt, only wire transfers to and from
Domiciliary Accounts are henceforth permissible.
“The CBN advises individuals that wish to
source foreign currency for eligible and legitimate purposes such as
BTA, PTA medical, mortgage, school fees, goods etc. to do so through wire transfers. By this circular, those who deposited
foreign currencies into their accounts before the directive will now
have to withdraw the cash as the fund will not be made available for them to use.”
0 comments