No Ban on Deposits into Domiciliary Accounts—CBN

By Dipo Olowookere

The Central Bank of Nigeria (CBN) has warned deposit money banks (DMBs) against misinforming customers over making payments into their domiciliary accounts.

In a circular issued on Monday, the apex bank said it has not placed any restriction on payment of foreign currencies into domiciliary accounts as being speculated in some sections of the media.

“All deposit money banks are advised to desist from misguiding their customers [on this issue],” the central bank cautioned in the circular signed by the director of trade and exchange department of the CBN, Dr O.S. Nnaji.

In 2015, the CBN had banned the payment of cash into domiciliary accounts in Nigeria so as to stop illicit financial flows in the Nigerian banking system. This move was made in the heat of pressure on the Naira as a result of huge demand for foreign exchange (forex).

In yesterday’s circular, the CBN said, “Following different interpretations of operations of domiciliary accounts, it has become imperative to clarify the operations of domiciliary accounts as contained in the Central Bank of Nigeria Foreign Exchange Manual Memorandum 25 provisions under reference.

“For the avoidance of doubt, all provisions of the Central Bank of Nigeria 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.”