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.

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.

Copy policy from MS Word US and Paste it in Corel Draw Nigeria. You expect it to work on the same format

When will all these stop!
Stop chasing shadows!

ozo-dimgba:
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.

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.

Don't you just like this man?

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.

It is real. I have even confirmed.

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

And Emir Sanusi continues his never-ending experiments in the banking industry..I laugh in Hausa!!

A square peg in round hole.

11th to comment Yipeee

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.

Abeg make dat guy go find somewhere sit down. Always coming up with silly ideas

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

They didn't say anything about the level three accounts?

What about the current customers, what happens to them?

1025:

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.

That guys policies are wack. He would have been better off as a lecturer on arabic studies.