In a significant move aimed at enhancing financial flexibility and empowering individuals, the Central Bank of Nigeria (CBN) has announced that cash deposits into domiciliary accounts will no longer be restricted.
This development comes as the CBN continues to implement measures to streamline financial transactions while ensuring compliance with existing regulations and anti-money laundering efforts.
The decision to remove restrictions on cash deposits into domiciliary accounts marks a notable shift in the CBN’s approach, providing individuals with increased freedom and convenience in managing their funds. The move is expected to particularly benefit those who engage in international transactions or hold foreign currency in their domiciliary accounts.
The CBN’s decision is underpinned by a commitment to conduct thorough Know Your Customer (KYC) procedures and diligently adhere to anti-money laundering/counter-terrorism financing laws. By maintaining strict compliance protocols, the CBN aims to strike a balance between providing financial flexibility and safeguarding against potential illicit financial activities.
Domiciliary accounts have long served as a popular option for individuals in Nigeria to hold foreign currencies, facilitating international transactions and offering a hedge against currency fluctuations. The removal of cash deposit restrictions now opens up even greater possibilities for account holders, allowing them to deposit funds into their domiciliary accounts without limitations.
This move is part of the CBN’s ongoing efforts to modernize and optimize Nigeria’s financial landscape. By removing barriers and fostering greater flexibility, the CBN aims to create an environment that supports economic growth and empowers individuals to manage their finances more effectively.