CBN issues directives on export proceeds over $2,000

CBN issues directives on export proceeds over $2,000

The Central Bank of Nigeria (CBN) has introduced a new directive for Pan-African Payment and Settlement System (PAPSS) transactions involving export proceeds exceeding $2,000. The mandate requires full documentation for such transactions to ensure compliance with foreign exchange regulations and proper clearance of goods. 

The updated rules specify that for transactions above $2,000 for individuals and $5,000 for corporate entities, all documentation outlined in the CBN Foreign Exchange Manual must be provided. For transactions below these thresholds, basic Know Your Customer (KYC) and Anti-Money Laundering documentation will suffice.

Furthermore, applicants must ensure the availability of regulatory documents for smooth goods clearance. A significant change also allows Authorized Dealer Banks to source foreign exchange for PAPSS transactions directly from the Nigerian Foreign Exchange Market, bypassing the CBN. This aims to increase transaction flexibility and efficiency.