CBN Makes Clarifications On Domiciliary Account

The Central Bank of Nigeria, (CBN) has clarified its position on the Operation of domiciliary account in the country. 

The apex bank disclosed that the export proceeds domiciliary accounts will continue to be operated based on existing operations. 

In a circular issued on Monday by its trade and Exchange department Director, Dr. O.S Nnaji, said the clarification became necessary following conflicting interpretations. 

CBN said; “Following different interpretation on the operationalization of domiciliary account and to ensure the stability of the foreign exchange Market, the CBN will like to provide the following clarifications.” 

On Export proceeds domiciliary accounts, the apex bank stated that “the account will continue to be operated based on existing operations which allow account holders use of their funds for business operations only, with any extra funds sold in the investors’ and exporters ( I&E) window. 

While clarifying on the Ordinary domiciliary account, it said “Where accounts are funded by electronic/wire transfers, account holders would be allowed unfettered and unrestricted use of these funds for eligible transactions. 

CBN added that where accounts are funded by cash lodgments existing regulations would continue to apply. 

It noted that these clarifications are necessary given the vastly improved capabilities of the CBN to monitor transaction, to forestall Money laundering and prevent the adverse effects of  dollarization in the economy.

It advised all authorized dealers to comply, noting that it would use the Bank Verification Number, (BVN) to enforce compliance with these regulations. 

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