- Form (A) I Account is limited to a maximum single deposit of 20,000
- Maximum cumulative balance 200,000 naira at any point in time
- Form (A) II is similar to form (A) I, but maximum single deposit is 50,000 naira
- Maximum cumulative balance is 400,000 naira
- International funds transfer prohibited.
By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-The central bank of Nigeria (CBN) Friday said it has developed a uniform account opening form for effective Know Your Customer (KYC) due diligence for all banks and other financial institutions.
The CBN in a circular dated February 24, 2014 and signed by Kevin Amugo, director, financial policy and regulation department of Nigeria’s central bank said the uniformity is to ensure that customer due diligence (CDD) is consistently and uniformly practiced in account opening process for prospective customers of financial institutions.
The CBN said individual prospective customers are required to complete account opening forms (A)1, (A)2 and form A for accounts in Tier I, I and III respectively, while legal entities are to complete form B.
‘’Whereas prospective customers are required to provide the relevant information applicable to them as prescribed above, existing customers are to regularly update their records in line with the formats’’ the CBN circular said.
For form (A) I individual, which is strictly savings account, terms and conditions are operations of the account is limited to a maximum single deposit of 20,000 naira and maximum cumulative balance 200,000 naira at any point in time and international funds transfer is prohibited.
Form (A) II is similar to form (A) I, but maximum single deposit is 50,000 naira and maximum cumulative balance is 400,000 naira.
For form A, each financial institution is to develop its own terms and conditions; the CBN says the condition should include a pledge/stringent conditions for current account customers for issuance of dud cheque.
