This has come to my notice that most Nigerians don’t know the process or requirements in opening a domiciliary account. This post will guild us on how to open a domiciliary account and its requirements.
Firstly, What is a Domiciliary Account: A Domiciliary account is a foreign account that allows us to trade with foreign currencies like USD, POUNDS, EURO, and others. You can pay in these currencies in the bank account and also withdraw the same currencies from the bank account.
With a Domiciliary account, one can make a transfer to another Domiciliary account using the prevailing rate as at that period of time. In this type of account, we have what is called Exchange Rate Gain/Loss. This means that a domiciliary account holder can either earn an exchange rate or Loss. Example if a holder transacts business at the rate of 365 to $1 with a part payment made by him or to him and when the balance of the business will be paid the rate fell to 360 to $1 (Loss) or increases to 375 to $1 (Gain). Such fund will either be favourable or adverse to either party of the business.
Requirements for opening a Domiciliary Account
- Duly completed Account Opening Form.
- Duly completed specimen signature card for a mandate.
- Two (2) recent passport photographs.
- Address verification document: Utility Bill.
- Valid means of identification e.g. International passport, Driver’s license or National ID card.
- Two (2) references attached.
Above are the requirement for opening a Domiciliary account in any Nigeria bank.