The Central Bank of Nigeria has banned the payment of cash into domiciliary accounts in the country, TheCable reports.
In a circular released on Wednesday and
signed by the Director of Trade and Exchange, CBN, Olakanmi Gbadamosi,
the central bank said its action followed recent statements 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.
“Therefore, in its continued efforts to
stop illicit financial flows in the Nigerian banking system
which aligns
with the anti-money Laundering stance of 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
recognised channels with the use of Form ‘A’ for “invisible” and Form
‘M’ for ‘visible’ transactions. By this circular, those who deposited
foreign currencies into their accounts before the directive will now
have to withdraw the cash as they are not going to be allowed to
transfer the funds.”
Source: The Punch
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