Tony Chukwunyem 
The Central Bank of Nigeria (CBN) has directed commercial, merchant and non-interest banks to ensure that, in implementing the foreign currency disclosure, deposit, repatriation and investment scheme 2024, recently introduced by the Federal Government, they comply with all Anti-Money Laundering/Combating the Financing of Terrorism/ Countering Proliferation Financing (AML/CFT/ CPF) laws and regulations.
In the guidelines on the implementation of the scheme posted on its website yesterday, which it said came into effect on November 6, 2024, the apex bank also directed CMNIBs to, “ensure that risk mitigation measures are put in place to minimize operational, technical, or fraud risks.”
“In particular, the provisions of the regulatory framework for Bank Verification Number (BVN) operations and Watch-List for the Nigerian Banking Industry (as amended) and other applicable laws and regulations, shall apply to CMNIBs in the implementation of the scheme,” the regulator added.
While launching the scheme on October 31, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, stated: “The Disclosure Scheme is a bold initiative aimed at integrating foreign currency outside the formal financial system into the formal economy.
It strengthens transparency and economic resilience, setting us on a path to rapid economic growth. “The scheme offers a secure, confidential channel for people to reintegrate their legitimate foreign currency funds, promoting stability and growth for our nation.”
According to the CBN’s guidelines on the implementation of the scheme, CMNIBs have responsibilities such as, opening domiciliary accounts designated for the purpose of the scheme for intending participants; receiving and processing applications from intending participants; accepting deposits of disclosed Internationally Tradable Foreign Currencies (ITFCs) from participants, either directly or from a legal person nominated by the participant; ensuring that ITFCs deposited by a participant are held in the designated domiciliary account; issuing a receipt to the participant not later than 24 hours from the time the ITFC is deposited,, indicating the originating country of the funds and acknowledging that such funds were received for the scheme.
For intending participants, the guidelines stated that they may invest their funds in “Permissible Investment Instruments and/ or Permissible Investment Sectors only,” and permit the CMNIB to share relevant account information with the CBN, “the Federal Ministry of Finance, and any other party with whom it would be legally necessary to share such information.”
Furthermore, participants are required to confirm that funds deposited under the scheme were not generated from illegal or criminal sources, that their involvement in the scheme is voluntary; and that they provided complete and verifiable information to the CMNIBs.
On operation of the scheme, the guidelines stipulate that in processing an application made by an intending participant, CMNIBs should obtain information including, “the applicant’s Bank Verification Number and National Identification Number (for natural persons and directors of incorporated entities) or Tax Identification Number (for legal persons); the amount of the ITFC sought to be deposited (and) details of the applicant’s designated domiciliary account into which the ITFC shall be deposited.”
In addition, the guidelines stated that CMNIBs are not permitted to impose any restriction on the withdrawal from the designated domiciliary account of the participant or terminate any investment made in a “permissible investment instrument or permissible investment sector with any such ITFC.”
