The Central Bank of Nigeria has made further clarifications on how domiciliary accounts held by customers in commercial banks can be operated following the misinterpretation of its directive at the weekend.
The apex bank, in a new letter dated February 24, 2020, and posted on its website on Monday night, cautioned Deposit Money Banks against misleading their customers on transactions carried out through domiciliary accounts in the country.
The bank also in a circular released warned commercial banks of misleading their customers on transactions carried out through domiciliary accounts in the country.
The letter, signed by the bank’s Director, Trade and Exchange Department, Dr. Ozoemena Nnaji, reads 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 deposit money banks are advised to desist from misguiding their customers. Please ensure strict compliance.”
The CBN Director, Corporate Communications, Mr. Isaac Okorafor made the clarification while speaking to newsmen in Abuja on Sunday.
A domiciliary account is a current account that allows you to fund it with foreign currencies such as dollars, pounds or euros and enables you to do foreign transactions on that account. The account could be used to transfer money to another country or receive foreign currency from another country.
