In an effort to control the economy effectively and to reduce the level of stealing of public funds, the CBN has issued a policy to every account holder in the country.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
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