Nigeria’s Central Bank Issues New Guidelines ti Banks with Customers operating domiciliary accounts

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The Central Bank of Nigeria (CBN) has issued new guidelines on the operations of domiciliary (foreign currency denominated) accounts.

This follows the different interpretations on the operationalization of such accounts.

For Export Proceeds of Domiciliary Accounts, they are to be operated based on existing regulations which allow account holders use of their funds for business operations only, with any extra funds sold in the Investors’ & Exporters’ (I&E) Window.

For Ordinary Domiciliary Accounts where accounts are funded by electronic/wire transfer, account holders will be allowed unfettered and unrestricted use of these funds for eligible transactions, according to the CBN.

However, where accounts are funded by cash lodgments, existing regulations will continue to apply.

The CBN said the clarifications are necessary given the vastly improved capabilities of the Central Bank of Nigeria (CBN) to monitor transactions, forestall money laundering and prevent the adverse effect of Dollarisation of the economy.

“All Authorized Dealers and the Geberal Public are to note that BVN would be used to enforce compliance with these regulations,” the CBN said.

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