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CBN warns banks against misleading customers on domiciliary account

CBN warns banks against misleading customers on domiciliary account

Godwin Emefiele, CBN Governor

The Central Bank of Nigeria has cautioned Deposit Money Banks against misleading their customers on transactions carried out through domiciliary accounts in the country.

The apex bank gave the warning in a letter dated February 24, 2020 and posted on its website on Monday night.

The letter signed by the apex bank’s Director, Trade and Exchange Department, Dr Ozoemena Nnaji, was addressed to all banks.

The letter read in part, “Following different interpretations of operations of domiciliary accounts, it has become imperative to clarify the operations of domiciliary accounts as contained in the CBN Foreign Exchange Manual Memorandum 25 provisions under reference.

“For the avoidance of doubt, all provisions of the CBN Foreign Exchange Manual has not changed and remains in effect.

“Consequently, all ordinary domiciliary account holders can utilise cash deposits not exceeding $10,000 or its equivalent by telegraphic transfers to fund eligible transactions.

“As a result, all deposits money banks are advised to desist from misguiding their customers. Please ensure strict compliance.”

The CBN had on Sunday said that it had not prohibited the acceptance of foreign currency cash deposits by Deposit Money Banks.

The Director, Corporate Communications, CBN, Isaac Okorafor, had clarified the uncertainties surrounding the operations of domiciliary accounts in Nigeria.

He said, “The bank has not prohibited the acceptance of foreign currency cash deposits by Deposit Money Banks.

“Only electronic fund transfers into domiciliary accounts can be transferred from such accounts while cash deposits into such accounts can only be withdrawn in cash also.”

Okorafor therefore urged stakeholders and other interested parties to always endeavour to seek clarification on issues and avoid speculative tendencies which were detrimental to the financial system.

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