The Federal Government of Nigeria is pleased to announce the commencement of the Foreign Currency Voluntary Disclosure, Depositing, Repatriation, and Investment Scheme, known as the Disclosure Scheme, in pursuance of Executive Order No. 15 of 2023 titled “Disclosure, Depositing, Repatriation, and Investment of Eligible Foreign Exchange Assets and Related Matters Order, 2023” and the “Foreign Currency Disclosure, Deposit , Repatriation, and Investment Scheme Guidelines, 2024”, issued by the Honourable Minister of Finance and Coordinating Minister of the Economy, on October 25th, 2024.
The Disclosure Scheme is a bold initiative designed to enhance transparency in the financial sector and boost Nigeria’s economic resilience, growth and development. By facilitating the voluntary disclosure, depositing, repatriation, and investment of internationally tradable foreign currency held by Nigerians, both within and outside the country, the scheme aims to integrate these legitimate foreign currency assets into the formal economy.
Key Objectives of the Disclosure Scheme:
Enhance Financial Transparency: Promote transparency in the financial sector by formalising legitimate foreign currency assets held outside the Nigerian banking system by Nigerians within or outside of Nigeria.
Bolstering AML and CFT Capabilities: The scheme specifically targets weaknesses in the existing framework by promoting cashless and legitimate transactions within the formal financial system. This strengthens regulatory enforcement while also encouraging financial practices that reduce the likelihood of illicit cash transactions.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, while launching the scheme today in his office in Abuja stated that “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”.
He emphasized that: “The scheme offers a secure, confidential channel for people to reintegrate their legitimate foreign currency funds, promoting stability and growth for our nation. Guided by President Tinubu’s leadership and supported by the Central Bank of Nigeria (CBN) and Ministry of Justice, we are building a transparent and inclusive economy, aligned with best practice in anti-money laundering and countering the financing of terrorism.”
Supplementary information
Eligibility:
Who Can Participate: Nigerians holding legitimately earned internationally tradable foreign currency.
Key Features of the Disclosure Scheme:
Voluntary Participation: The scheme is based on voluntary disclosure by eligible participants.
Designated Accounts: Participants are required to maintain a domiciliary account with participating financial institutions, with deposited or repatriated funds held in a sub-account specifically designated for depositing foreign currency disclosed under the Detailed guidelines for participating financial institutions are as published by the Central Bank of Nigeria (CBN) in this regard.
Forbearances and Assurances:
Tax Incentives: Participants will not be subjected to any tax audit, investigation, or
liability regarding the disclosed amount of foreign currency.
Protection of Assets: Disclosed, deposited, repatriated, and invested foreign currency under the scheme shall not be liable to any form of expropriation, seizure, or forfeiture.
Unrestricted Repatriation: Participants can freely repatriate their foreign currency and any proceeds or accretions at the prevailing exchange rate, subject to the scheme’s guidelines.
Confidentiality: Information provided by participants will be treated with utmost confidentiality in accordance with relevant laws.
Participating Financial Institutions:
Deposit money banks regulated by the CBN will act as participating financial institutions, responsible for processing applications, maintaining designated accounts, and ensuring compliance with the scheme’s guidelines.
AML/CFT Measures:
• In implementing the Scheme, participating financial Institutions must fully comply with existing Anti-Money Laundering (AML)/ Countering the Financing of Terrorism (CFT)/ Counter-Proliferation Financing (CPF) requirements. For avoidance of doubt, the effective application of AML/CFT/CPF preventative measures is key to ensuring that the Scheme is not used for money laundering or terrorism financing.
Benefits to Participants:
• Interest Earnings: Any interest earned on balances in the designated domiciliary sub-account will not be subject to any form of tax.
Duration of the Scheme:
• The Disclosure Scheme will be open for participation for a period not exceeding nine (9) months from the date of commencement.
How to Participate:
• Application Process:
Step 1: Maintain or open a domiciliary account with a participating financial institution. Contact participating banks for additional details.
Step 2: Complete the application form prescribed by the CBN through the participating financial institution, providing the required details and undertakings.
Step 3: Deposit or repatriate the disclosed foreign currency into the designated domiciliary sub-account.
About the Disclosure Scheme:
The Foreign Currency Voluntary Disclosure, Depositing, Repatriation, and Investment Scheme (the ‘Disclosure Scheme’) is an initiative of the Federal Government of Nigeria, established under Executive Order No. 15 of 2023 and governed by the Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme Guidelines 2024. The scheme aims to formalise legitimate foreign currency held by Nigerians into the formal economy, in strict adherence to AML/CFT/CPF guidelines.
For More Information: Please visit www.finance.gov.ng/disclosurescheme
Signed:
Mohammed Manga, FCIA
Director, Information and Public Relations
Ministry of Finance
For: Honourable Minister
October 31st, 2024
