FREQUENTLY ASKED QUESTIONS ON ELECTRONIC CERTIFICATE OF CAPITAL IMPORTATION.
- Dadey Peculiar
- Mar 27, 2017
- 4 min read
FREQUENTLY ASKED QUESTIONS ON ELECTRONIC CERTIFICATE OF CAPITAL IMPORTATION
1. What is the full meaning of the acronym “CCI”
A: The full meaning of CCI is Certificate of Capital Importation. It is a certificate issued by a Nigerian bank confirming an inflow of foreign currency in cash or goods by an investor or lender.
2. Why CCI?
A: The certificate is aimed at providing customers with statutory evidence of capital inflow/investment into Nigeria. It legitimizes and facilitates the repatriation of dividends, interest/coupon and capital to the investor. It also facilitates repayment on foreign loans along with interests accrued.
3. What is eCCIS?
A: The eCCIS refers to the electronic Certificate of Capital Importation System (eCCIS). The eCCIS will replace the current paper CCI being issued to investors by Nigerian banks. It is an electronic platform for the issuance and administration of CCIs. An initiative of the Association of Asset Custodians of Nigeria (AACN), Financial Markets Dealers Association (FMDA) and the Central Bank of Nigeria (CBN).
4. What are the benefits of eCCIS?
A: eCCIS aims to automate and digitize the Certificate of Capital Importation (CCI). It is expected that the automated process will mitigate the errors associated with manual processing of CCI activities while facilitating the delivery of efficient services to all stakeholders in the market.
The accruing benefits expected from the eCCIS are as follows:
Alleviate challenges with handling/safe-keeping of physical CCIs
Provides a platform to the banks to issue, administer and reconcile their stock of CCIs in an automated and efficient manner.
CCI transfers and indemnity letters amongst banks will be done online; thereby improving efficiency and turn-around-time (TAT).
Requests requiring CBN’s approval will be sent online and status can be easily tracked. This would improve TAT.
Improve Banks’ Internal processes by minimising operational overburden due to manual processing
Reduction in paper usage and printing cost with the resultant positive impact on the environment.
Facilitates reporting and CBN monitoring/supervision of the CCI process and handling by the banks and its customers.
Affords various investors the opportunity to view their stock of CCIs across the various Banking institutions in Nigeria electronically. Investors can view their individual CCIs and total stock/value of CCIs online across the various banks and can have better oversight on them.
5. What is the procedure for registering my CCI
A: Customers are expected to submit original CCIs in their possession to their Banker for registration.
6. What happens to my Physical C.C.I when it is submitted?
A: Your original physical CCI will be dematerialized, after full details of the records have been captured electronically into the eCCIS.
7. How can I be sure my CCI is registered
A: View only access would be granted to clients to validate the electronic version of their registered CCIs.
8. Why can’t I keep my physical C.C.I since it is going to be useless after dematerialization?
A: As part of the CCI dematerialization process, all active CCIs have to be submitted to the customer’s bank.
9. When is the planned cut-over of the CCI to the new system
A: The cut-over to the new eCCI application is planned for April-May, 2017
10. How would Customers have access to the electronic CCI ?
A: Upon request by the customer to any of their bankers, the customer’s access would be created and the customer would be able to view all their CCIs across all their banks.
11. If I am to access the platform using a password, I bank with several banks, which bank will be my preferred bank to collect my password from?
A: Any of the customer’s bankers can create the customer’s access. The bank creating the access would provide the customer with their password.
12. What will I get as an evidence of inflow for CCI purpose after go-live
A: Paper CCIs will no longer be issued for foreign exchange inflows after the go-live date. Rather, an e-certificate will replace the paper CCI. Electronic copy of the Issued CCI can be printed or viewed on the eCCIS.
13. Now that Electronic CCI is to be issued, will the requirements for CCI change?
A: No, the regulatory requirements for the issuance of CCI remain the same in line with the CBN guidelines.
14. How long will it now take for my CCI to be issued?
A: Within 24 hrs from when the inflow is received, subject to the local exchange control documentation.
15.Is there any underlying cost to me as a customer with this new process of issuing CCI?
A: No underlying cost.
16. Will I be able to access and view all my CCIs issued across all banks that I use in Nigeria?
A: Yes, Investors will be able to view all their CCIs across all banks as the client access view connects to the same platform.
17. Will I see the signature of the bank’s authorized signatories on my eCCI?
A: No. Since the eCCI is an electronic copy, there would be no signature on the Certificate.
18. What will happen to existing CCIs upon go-live?
A: Existing CCIs will be dematerialized and no longer usable.
19. Will an eCCI be transferable (i.e. from one bank to the other)?
A: Yes, an eCCI is transferable from one bank to the other upon clients’ request.
20. How is Disaster Recovery and Business Continuity Managed on the eCCI platform? Any backup arrangement?
A: To ensure tolerable disruption of service in the event of a disaster, necessary requirement for the Disaster Recovery and Business Continuity Plan has been adequately covered for the eCCIS. There are Disaster Recovery Sites at the CBN offices in Abuja and in Lagos (one hour apart by air).
21. Will eCCIS also cover corporate actions?
A: Yes, it would cover corporate actions and all other investment actions affecting the value of the CCI.
22. Since CCI documents are extremely important, we are reluctant to release them without some sort of guarantee from your bank. Once the Certificates are digitized, what do we as a company have to prove their existence?
A: It is expected that your banker gives you an acknowledged copy of the submitted CCI which can be used as proof in the very unlikely event that anything goes wrong. Upon go live; Customers would be able to view all their eCCI on the eCCIS.
23. Will the process of requesting issuance of CCI change when e-CCI portal is in place?
A: No, the process would not change.
24. How will transfer of CCI take place from one bank to another?
A: Transfer from one bank to another bank would be done electronically on the eCCIS.
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