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CBN Sets New Deposit Limit For Account Holders by INTERALIA(m): 5:40pm On Jan 24, 2013 |
CBN sets new deposit limit for account holders 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. The policy pegs a maximum single deposit amount of N20,000 and maximum cumulative balance of N200,000 at any point in time on the Low Value Account. It also places a maximum single deposit of N50,000 and a maximum cumulative balance of N400,000 on the Medium Value Account. However for the High Value Account, no limit is placed on cumulative balance. The policy also categorised bank customers into Low Value Accounts (Level One); Medium Value Accounts (Level two) and High Value Accounts (Level three). 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 exigent after the CBN recognised that access to basic banking facilities and other financial services is necessary 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 denied. 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 products 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.[b] CBN sets new deposit limit for account holders 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. The policy pegs a maximum single deposit amount of N20,000 and maximum cumulative balance of N200,000 at any point in time on the Low Value Account. It also places a maximum single deposit of N50,000 and a maximum cumulative balance of N400,000 on the Medium Value Account. However for the High Value Account, no limit is placed on cumulative balance. The policy also categorised bank customers into Low Value Accounts (Level One); Medium Value Accounts (Level two) and High Value Accounts (Level three). 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 exigent after the CBN recognised that access to basic banking facilities and other financial services is necessary 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 denied. 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 products 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.[/b] CBN sets new deposit limit for account holders 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. The policy pegs a maximum single deposit amount of N20,000 and maximum cumulative balance of N200,000 at any point in time on the Low Value Account. It also places a maximum single deposit of N50,000 and a maximum cumulative balance of N400,000 on the Medium Value Account. However for the High Value Account, no limit is placed on cumulative balance. The policy also categorised bank customers into Low Value Accounts (Level One); Medium Value Accounts (Level two) and High Value Accounts (Level three). 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 exigent after the CBN recognised that access to basic banking facilities and other financial services is necessary 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 denied. 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 products 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. |
Re: CBN Sets New Deposit Limit For Account Holders by ozodimgba(m): 6:32pm On Jan 24, 2013 |
Na waa for naija na poor man dey launder money or spoonsor terrorism abi na big men? Why they no put any limit for the high value account. Our policy makers are selfish and greedy. 1 Like |
Re: CBN Sets New Deposit Limit For Account Holders by RichDad1(m): 6:46pm On Jan 24, 2013 |
Why is This Sanusi man always losing touch with reality? |
Re: CBN Sets New Deposit Limit For Account Holders by talktrue1(m): 6:52pm On Jan 24, 2013 |
Copy policy from |
Re: CBN Sets New Deposit Limit For Account Holders by hrmkz: 6:53pm On Jan 24, 2013 |
When will all these stop! Stop chasing shadows! |
Re: CBN Sets New Deposit Limit For Account Holders by bodejohn(m): 6:54pm On Jan 24, 2013 |
ozo-dimgba: Too bad you didn't read the contents of the article before making your comment. In my own understanding of this policy, the CBN wants to increase the amount of information of each customer the the bank keeps, the popular KYC. But to make these easy for the banks and their customers, these additional KYC information will only be required on accounts with big balances. So if I only withdraw or will not withdraw more that 20,000 naira, the bank does not need to verify my address and other stuffs. This is a welcome idea and does not necessary mean that there are new limits to what can be withdrawn or deposited. |
Re: CBN Sets New Deposit Limit For Account Holders by manny4life(m): 7:03pm On Jan 24, 2013 |
Don't you just like this man? |
Re: CBN Sets New Deposit Limit For Account Holders by oseiwe(m): 7:26pm On Jan 24, 2013 |
I have not received a circular regarding dis mata, I'll wait till on monday evening for clarifications. I don't see dis policy holding up in 9ja, cashlite cldnt even progress outta lagos. |
Re: CBN Sets New Deposit Limit For Account Holders by INTERALIA(m): 8:09pm On Jan 24, 2013 |
It is real. I have even confirmed. |
Re: CBN Sets New Deposit Limit For Account Holders by mudistr(m): 8:49pm On Jan 24, 2013 |
this policy will definitely affect those seeking visas to the UK. Watch out as UKBA uses this to sift out folks who fall under low value account |
Re: CBN Sets New Deposit Limit For Account Holders by sholatech(m): 9:06pm On Jan 24, 2013 |
And Emir Sanusi continues his never-ending experiments in the banking industry..I laugh in Hausa!! |
Re: CBN Sets New Deposit Limit For Account Holders by Nobody: 9:46pm On Jan 24, 2013 |
A square peg in round hole. |
Re: CBN Sets New Deposit Limit For Account Holders by Nobody: 9:50pm On Jan 24, 2013 |
11th to comment Yipeee |
Re: CBN Sets New Deposit Limit For Account Holders by 1025: 11:16pm On Jan 24, 2013 |
val_dee: A square peg in round hole. that was a copyright because it has been in my mind before u copied it from my mind. jonathan and his pdp agents have decided to leave the object in pursuit for shadow. it is a very big shame. if jonathan is in charge and normal on his own, the day sanusi made a decision to spend N40B to print N5,000 note was supposed to be his last day in office. pdp is just a group of tauts with no knowledge of human beings. |
Re: CBN Sets New Deposit Limit For Account Holders by Wendyslim(f): 11:40pm On Jan 24, 2013 |
Abeg make dat guy go find somewhere sit down. Always coming up with silly ideas |
Re: CBN Sets New Deposit Limit For Account Holders by naijaking1: 2:19am On Jan 25, 2013 |
That's one way to kill an industry. Today, we look back and wonder who killed Nigeria's super standard education level of the 1950-80s. One day, people will remember the good old days of Nigerian banking, and then wonder 'who killed the banking industry in Nigeria' It took 4 decades to teach average Nigerians about the need to utilize the banking industry, but it's going to take 1 year to destroy people's confidence in our banks, just one year. Thanks to our dear islamic banking prince from Kano |
Re: CBN Sets New Deposit Limit For Account Holders by Nobody: 11:47am On Jan 25, 2013 |
They didn't say anything about the level three accounts? What about the current customers, what happens to them? |
Re: CBN Sets New Deposit Limit For Account Holders by Nobody: 9:43am On Jan 26, 2013 |
1025: That guys policies are wack. He would have been better off as a lecturer on arabic studies. 1 Like |
Re: CBN Sets New Deposit Limit For Account Holders by mukina2: 9:48am On Jan 26, 2013 |
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