CBN Finally Prohibits Acceptance of Foreign Cash Deposits by Banks
Written by Taiwo Adediran on August 6, 2015
The Central Bank of Nigeria (CBN) has proscribed the acceptance of foreign cash deposits by commercials banks operating in the country in which the policy became effective yesterday therefore bank customers with US dollars or any foreign currency will no longer be able to pay cash into their domiciliary bank accounts.
The central bank gave the directive in a circular addressed to all authorised dealers and the general public.
Prior to the CBN circular, banks in the country had been rejecting foreign currency deposits from their domiciliary account holders since last week.
To this end, the CBN said it considered the recent statement by banks concerning the large volume of foreign currencies in their vaults and their decision to stop accepting foreign currency cash deposits into customers’ domiciliary accounts as a welcome development to stop illicit financial flows in the Nigerian banking system which aligns with the anti-money laundering stance of the federal government.
In a related development, the Senate yesterday expressed grave concern over the continuing depreciation of the naira and consequently summoned the Governor of the CBN, Mr. Godwin Emefiele, to brief it on the situation.