CBN Bans Foreign Currency Cash Deposits Into Domiciliary Accounts

The apex bank Central Bank of Nigeria (CBN), yesterday, stopped the deposit of foreign currency cash deposit into domiciliary accounts, what this means is that Nigeria commercial banks from now onwards will not accept foreign currency from customers to be paid into their domicilary accounts.

In statement signed by the apex bank’s Director, Trade and Exchange Department, Olakanmi I. Gbadamosi it read thus; “it has considered the recent statements by deposit money banks concerning the large volume of foreign currencies in their vaults and their decision to stop accepting foreign currency cash deposit into customers’ domiciliary accounts as a welcome development.”

According to the CBN, it as part of its continued efforts to stop illicit financial flows in the nation’s banking industry and also in aligning with the Federal Government anti-money laundering efforts, it was prohibiting immediately, the acceptance of foreign currency cash deposit 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 transfer 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.”