CBN UPDATE ITS CUSTOMERS ON DOMICILIARY ACCOUNT REGULATIONS

By: Nanah hauwa isah

Estimated reading time: 2minute 

"All Authorized dealers and the general public are to note that BVN would be used to enforce compliance with these regulations" 

The  central bank of Nigeria (CBN) have urged all authorised dealers and the general public who are operators of domiciliary account to take note on the clarifications it has provided in order to ensure the stability of foreign exchange market.

This was mentioned by DR. O.S NNAJI, Director for trade and exchange (CBN) on monday 30th November. 

He stated clearly that following the different interpretations on the operationalization of domiciliary accounts, clarifications has been provided in two major categories: 

●Export Proceeds Domiciliary Accounts

 ● Ordinary Domiciliary Accounts

Export Proceeds Domiciliary Accounts

These accounts will continue 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.

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.   Where accounts are funded by cash lodgments, existing regulation will continue to apply.

The CBN has improved its capabilities vastly in recent times making it more efficient in tackling issues that pose threat to the nation's economy.  i.e forestall money laundering and prevent the adverse effect of dollarization.

Central bank of Nigeria have also improved immensely in monitoring transactions thereby making it safer for technology driven payment system to take place in Nigeria.

He also added that all authorized dealers and the general public are to note that BVN would be used to enforce compliance with these regulations,  

Please be guided accordingly.