CBN Provides Clarifications on the Operations of Export Proceeds and Ordinary Domiciliary Accounts

Monday, November 30, 2020 / 07:04 PM / by CBN/ Header Image Credit: EcoGraphics

Following different interpretations on the operationalization of Domiciliary Accounts and to ensure the stability of the foreign exchange market, The Central Bank of Nigeria (CBN) would like to provide the following clarifications.

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.

These clarifications are necessary given the vastly improved capabilities of the Central Bank of Nigeria to monitor transactions, forestall money laundering and prevent the adverse effect of Dollarization in our economy.

All Authorized Dealers and the General Public are to note that BVN would be used to enforce compliance with these regulations.

Related News - Domiciliary Accounts

1. CBN Issues Clarification on the Operations of Ordinary Domiciliary Accounts
2. CBN: Initial Thought On Domiciliary Accounts
3. CBN Debunks Rumour on Closure of Domiciliary Account
4. Customers lament domiciliary account arbitrary charges

Related News

1. CBN Clarifies That 'Form M' May Be Processed for Purchases Made Through Third-Party Agents
2. CBN Clarifies Destination Payment for All Forms M, Letters of Credit and Other Forms of Payment
3. Manufacturing PMI Stands at 50.2% in November 2020 from 49.4% in October 2020
4. CBN Issues Guidelines for the Private Sector-Led Accelerated Agriculture Development Scheme
5. CBN Financial Markets Dept Releases 2019 Activity Report
6. CBN Removes the Restriction on Non-Member Mortgage Lenders from Refinancing
7. CBN Releases Framework for the Operation of the NIRSAL MfB Window of the N-YIF
8. Manufacturing PMI Stands at 49.4% in October 2020 From 46.9% in September 2020
9. CBN Grants Merchant and Regional Banks Dispensation to Appoint Chief Compliance Officers
10. CBN Issues Framework for Financing of National Mass Metering Program