The Central Bank of Nigeria (CBN) has issued guidelines for implementing the free foreign exchange deposit window announced by the federal government.
The FG’s exchange window, which kicked off on October 31, 2024, provides a nine-month amnesty for Nigerians with foreign currencies at home to disclose and deposit the same in banks without paying taxes or penalties.
In a circular with reference number FPR/DIR/PUB/CIR002/013 to banks dated November 5, 2024, the CBN clearly stated the dos and don’ts of the scheme.
In the guidelines, CBN permits banks to trade with foreign currency deposited by participants in the scheme.
Part of the document stated:
CBN also specified that interest payments on deposits must align with the provisions in the guide to charges by banks and other financial institutions in Nigeria.
Furthermore, the guidelines require banks to collect specific details from depositors, including their Bank Verification Number and National Identification Number for individuals or Tax Identification Number for entities.
Punch reports additional requirements, including the amount to be deposited and details of the applicantâs designated domiciliary account.
The CBN also mandated banks to adhere strictly to anti-money laundering laws and other financial integrity regulations, stating that banks must identify the beneficial owner of deposited funds and ensure that any deposits transferred via wire comply with existing transaction standards.
Banks were also tasked to conduct customer due diligence, which includes
Earlier, TimesNow.com.ng reported that Fitch Ratings has expressed caution about the stability of Nigeria’s foreign exchange market despite CBN’s several assurances and efforts.
The agency believes that the Central Bank of Nigeria and other efforts have yet to yield a positive result.
There is a glimmer of hope for CBN as Nigeriaâs gross foreign exchange reserves rose to $39 billion in October.
Source: TimesNow.com.ng
