The Central Bank of Nigeria (CBN) yesterday set new deposit limits for all categories of account holders and introduced three-tier Know Your Customer (KYC) requirements for banks.
With the new policy, bank customers have now been categorised into Low Value Accounts (Level One); Medium Value Accounts (Level two) and High Value Accounts (Level three).
For Low Value Account holders, the policy pegs a maximum single deposit amount of N20,000 and maximum cumulative balance of N200,000 at any point in time. For Medium Value Account holders, a maximum single deposit of N50,000 and a maximum cumulative balance of N400,000. However for the High Value Account, no limit is placed on cumulative balance.
A circular to all banks and other financial institutions (OFIs) signed by CBN Director, Financial Policy and Regulation, Chris Chukwu, explained that the policy became necessary after the CBN recognised that access to basic banking facilities and other financial services is crucial in achieving the policy on financial inclusion. He advised banks to adopt the new KYC requirement adding that the proposed deposit limits is meant to reduce the risk of money laundering and financing of terrorism.
He said the Low Value Accounts are subject to close monitoring by the financial institutions and less scrutiny by bank examiners.
The CBN director said the accounts could be opened at branches of banks by a prospective customer or through banking agents and no amount is required for its opening. However, such accounts prohibit international funds transfer.
According to him, the Medium Value Accounts can be opened face to face at any branch of a bank by agents for enterprises or by the account holder but, the accounts are strictly savings with no amount required for its opening. Also, where cross-checking of client’s identity cards information is not completed at the point of account opening, withdrawal would be declined.
Chukwu added that for the High-Value Accounts, banks are required to obtain, verify and maintain copies of all the required documents for accounts opening. Account is to be opened at the bank branches by physical presence of the prospective customer and the accounts could be both savings and current.
However, for mobile banking products, the account attracts a maximum transaction limit of N100, 000 and daily limit of N1 million however, such services are subject to the CBN Regulatory Framework for Mobile Payments Services in Nigeria.
He said that banks are required to have robust, effective and efficient anti-money laundering /combating the financial terrorism (AML/CFT) solutions with screening tools in place that will monitor the various thresholds. “All accounts, no matter how low the transaction or the risks, must be subjected to continuous suspicious transactions monitoring by financial institutions which will determine when incremental KYC requirements need to be provided by the customers,” he said.
He said the CBN will ensure the establishment of appropriate processes and procedures for the purpose of monitoring compliance with the regulatory framework. He added that non-compliant financial institutions would be sanctioned in line with the provisions of extant laws and regulations. He said 64.1 per cent representing 56.3 million adult Nigerians do not have access to financial services, hence the policy is also meant to bridge the gap.
Rubbish! dt means we have to be keeping our money @ home. or better still welcom back d community bank.
very soon the poor man will not be allowed to breath the air given by God.
Malam Sanusi? do you know that the ordinary man is in need of cash to do business? you here telling me to deposit 20k Max and allow it grow to 200k before i can have access to my own money that you did not give. Watch very soon cash will no longer be in circulation. you are done with your own risk strategies, so give way for an economist because that’s what this country needs now.
Sanusi! Sanusi!! Sanusi!!! What system do you want to adopt, please remember that nigeria is a developing nation, and that there might be unforeseen circumstances. That the low level would have, e.g he might be given a grant that is more than the maximum, would u expect him to keep the money at home for armed robbers to invade him??? Please don’t start adopting the methods of developed countries to that of ours. IT IS NOT GONNA WORK!
God/Allah bless Mallam Sanusi. I like him to be gov CBN for next 10yrs. Why?, Well if you feel you are a high value bank customer to deposit and withdraw as u like, give ALL your personal details to the bank, age, educ level, work/biz experience, sources of income/assets. A N20,000=/mth police constable who is now into armed robbery/kidnapping has to explain his Nmillions. LGA councilliors/state house of assembly members/NASS senators/all politicians should now queue up b4 Sanusi boys at the banks. Up Sanusi. This is the easiest way to fight BOKO HARAM, KIDNAPPING, MONEY LAUNDARING, KICK BACKS. How/where do you hide millions/billions if not in the banks!
if u use ur brain, u wud realise he is opposing his cashless policy. this wud only encourage ppl to keep their money @ home. u beta grow up n support ppl cos of merit and not for tribal reasons……….. mumu
Sanusi is a joker.as he earning millions,he thinks it is like that alover.
Poor nigerians will be keeping their money under their pillo.or go back to former primitive method of savings.i cant suffer getting money also surfer to collect.sanusi is a mad boko
Sanusi what are you up to? i can’t imagine how we nigerians are going to survive this, you just come out with different laws of banking. Are you the owner of the money? I can’t blame you because all this law will only affect the less priviledge one not those with tiger clarw. Sanusi we need improvement on our economy not categorizng on how money is being save. Na wa o, man with power.
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