The Central Bank of Nigeria has considered the recent statements by commercial banks concerning the large volume of foreign currencies in their vaults and the decision to stop accepting foreign currency cash deposits into customers’ domiciliary accounts as a welcome development.
The Apex bank in its continued efforts to stop illicit financial flows in the Nigerian banking system which aligns with the anti-money Laundering stance of the Federal Government has therefore prohibited the acceptance of foreign currency cash deposits by commercial banks.
However, for foreign currency cash lodgement 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. Only wire transfers to and from Domiciliary Accounts are henceforth permissible.
The CBN advises individuals that wish to source foreign currency for eligible and legitimate purposes to do so through recognized channels with the use of Form ‘A’ for “invisible” and Form ‘M’ for “visible” transactions.