The weekly cash withdrawal caps for individuals and corporate entities have been increased by the Central Bank of Nigeria (CBN) to N500,000 and N5,000,000, respectively.
Individual cash withdrawals were formerly limited to N100,000 per week, while corporate organizations were only allowed to withdraw N500,000 per week.
A circular with the number BSD/DIR/PUB/LAB/015/073 and the date December 21, 2022 contained the reviewed restrictions under the new policy.
The announcement made by Mr. Haruna Mustapha, director of banking supervision.
Any withdrawal that exceeds the predetermined limitations requires written authorization from the bank's managing director, according to the CBN.
Third Party Cheques worth more than N1 million will not be permitted for withdrawal over the counter, it was added.
The top bank issued a warning that any bank that colludes with its clients to get around the rules would face harsh penalties.
The revised rules will go into effect on January 9, 2023.
The circular reads in part: “Following our circular BSD/DIRIPUB/LAB/015/069 dated December 6, 2022, on the above subject and based on feedback received from stakeholders, the CBN, hereby makes the following reviews:
“The maximum weekly limit for cash withdrawal across all channels by individuals and corporate organisations shall be N500,000 and N5,000,000, respectively.
“In compelling circumstances where cash withdrawal above the limits in (1) above is required for legitimate purposes, such requests shall be subject to a processing fee of three per cent and five per cent for individuals and corporate organisations, respectively.
“Further to (2) above, the financial institution shall obtain the following information from the customer, at the minimum, and upload the same on the CBN portal created for the purpose
A. Valid means of identification of the payee (National ID, International Passport, or Driver’s License); Bank Verification Number, BVN, of the payee; Tax Identification Number, TIN, of both the payee and the payer; Approval in writing by the MD/CEO of the financial institution authorising the withdrawal.
There is still a N10m limit on clearing checks.
“Third-party cheques above N100,000 shall not be eligible for payment over the counter, while the extant limit of N10million on clearing cheques still subsists."
Refunds on cash withdrawals over certain restrictions each month.
“Kindly further note the following: “Monthly, returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision, Other Financial Institutions Supervision and Payments System Management Departments as applicable."
Compliance with current KYC, CDD, currency, STR, and other AML/CFT rules is required.
“Compliance with extant AML/CFT regulations relating to KYC, ongoing Customer due diligence, CDD, currency and suspicious transaction reporting, STR etc., is mandatory in all circumstances."
“Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions."
“Bank and Mobile Money Agents are important participants in the financial system, enabling access to financial services in underserved and rural communities. They will continue to perform these strategic functions, in line with existing regulations governing their activities."
“The CBN recognises the vital role that cash plays in supporting underserved and rural communities and will ensure an inclusive approach as it implements the transition to a more cash-less society."
“All banks and OFls are to note that aiding and abetting the circumvention of this policy will attract severe sanctions."
“The above directives supersede that of December 6, 2022, and take effect nationwide from January 9, 2023.”