Domiciliary accounts are a specific type of bank account used to transfer and receive foreign currencies. The account is usually a current account. Such currencies include; dollars, pounds, Euros, etc. It depends on the account. This means that the account opened would be based on the currency selected.
This account is used to transfer money to an account in another country as it used to receive money from a foreign country. It is good to note that a domiciliary account isn’t used to save and as such is not a savings account.
How A Domiciliary Account Works
To use a domiciliary account, a user would have to open the current bank account with its bank in the country that it resides in.
On automation, once the account has been created, the user will receive its account number either through its email or the mobile phone number used to open the account.
Once the account is received and the user has confirmed that it is active, it can now send the number to the individual who wants to send money to the account alongside some other necessary details.
Because domiciliary accounts only work with one currency at a time, whoever sends money to the domiciliary account must send it in the currency the account is based on. This means that if the account is opened as a dollar account, only dollars can be sent to the account.
Once the user receives an alert notifying it of a credit transaction on its account, the user can now approach its bank and withdraw the money sent. To make a withdrawal on the account, a user must first fill a form called a foreign currencies withdrawal slip. Once the user collects the money ( i.e Dollar) it can now change the currency to its country’s currency ( i.e Niara) at an approved currency exchange facility.
The exchange facility is an establishment that exists to buy dollars or any other currency for a person and exchange it for Naira or whatever local currency is used in the person’s country. This process still works in reversal if a user wishes to exchange its local currency for a foreign one.
Opening a Domiciliary Account with Access bank
Unlike other banks in Nigeria, Access Bank operates 3 types of accounts that have to do with international transactions. They are Diaspora Savings, Diaspora Naira Current and Diaspora Domiciliary and although they sound different all have the same requirements.
The requirement to open a domiciliary account includes;
- A completed account opening form that includes the signature
- One single passport photograph
Proof of user’s identity: A sighted copy of any one of the following forms of identification
- Download an SVG file that can be perfectly vectored on either PC or Desktop
- A Valid Nigerian Passport
- A Valid international/foreign Passport that is supported by proof of Nigerian origin (Expired/Valid Nigerian Passport or driver’s license)
- Birth Certificate
Proof of User’s Residential Address; A notarized copy of any one of the following
- A properly filled banker’s Confirmation
- A copy of the User’s Utility Bill issued within the last three months. It must show the same address that was supplied
- The user’s Bank/Credit statement was issued within the last three months. It must show the user’s address
References (Diaspora Naira Current and Domiciliary accounts): Two valid/acceptable references using any of the following options;
An independent reference letter got from current bankers (Foreign) and A signed reference form bt an Attestor of Nigerian Origin who maintains a current account with a Nigerian Bank
Two duly signed forms by Attestors of Nigerian origin who maintains a current account with a Nigerian Bank
- Indemnity: A duly executed indemnity form (for Email. Scanned documents and fax)
- Joint Accounts: A notarized copy of the Marriage Certificate is required alongside all other necessary documents as noted/stated above.
- The BVN of the signatory(s)
- AML risk assessment
- FATCA form (that is if the user resides in the USA)
Somethings to Know about Dom Accounts
Here are some things to note about Dom Accounts;
- A user can use any foreign currency in its domiciliary account but this depends on the currencies the bank offers in its country. Most banks use the most accepted and widely used currencies which are mostly US dollars, British Pounds and Euros
- A user that makes use of a Nigerian bank can only fund it with foreign currency. This means that the Naira cannot be used to fund the account.
- A user should make sure they confirm the currency they would receive against the currency the bank offers before opening a Dom account with the bank. If a user is supposed to receive payment in dollars and the account opened with the bank is in pounds, such funds would not be able to enter the account.
- A user can receive payments in its domiciliary account from a foreign country using wire transfer. It isn’t the only method of transfer available but it is mostly used. It usually takes about 2-3 working days for the currency to reflect in the user’s account starting from when the money was sent.
Opening a Dom account with Access bank is simple and easy. With a Dom account, a user can receive direct foreign currencies, make payment for international transactions, has more control over unstable currencies and as a plus the user can now serve as a referee for someone else.
All this can be done when a user opens a domiciliary account with Access Bank.