CBN Issues Guideline To Enforce Voluntary Disclosure Of Foreign Currency Transactions

The Central Bank of Nigeria (CBN) has released a policy guideline aimed at strengthening foreign currency disclosure, deposits and repatriation.

The guideline is part of moves to implement the Presidential Executive Order No.15 issued on October 19 2024 to facilitate voluntary disclosure deposits and repatriation of foreign currencies held onshore and offshore by Nigerian citizens within and outside.

The apex bank said that the guideline titled, ‘Guidelines on Implementation of the Foreign Currency Disclosure, Deposit, Repatriation and Investment Scheme to Commercial, Merchant and Non-Interest Banks (CMNIBs),’ seen by NewsNGR would take effect November 6, 2024.

According to the apex bank, the guidelines clarified regulatory expectations from CMNIBs on their participation in the Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme, 2024.

CBN said banks will “Avail the bank (CBN) upon request, information on deposits of Internationally Tradable Foreign Currency (ITFCs) within 48 hours of issue of such request.”

The guideline also provides that the participants, “Shall permit the CMNIB to share relevant account information with the bank (CBN), the Federal Ministry of Finance, and any other party with whom it would be legally necessary to share such information.”

The CBN further mandated banks to ensure that the funds deposited under the scheme are not from illegal or criminal sources.

Part of the duties of the CBN is to “Provide the Ministry of Finance with such data/information received from the CMNIBs on the operation of the Scheme, on an industry or individual bank basis, or in such other forms as the Bank may determine.”

On the conversion of deposited ITF, the CBN mandated banks to permit a participant to exchange part or the whole ITFC in the participant’s designated domiciliary account for naira at the prevailing exchange rate, provided that such conversions are properly disclosed and reported in the CMNIB’s foreign exchange returns.

The apex bank said, “Every CMNIB shall render monthly returns (in line with a template to be advised by
the Banking Supervision Department) to the Bank on the operation of the Scheme not later than the 14th day of the following month.”