Opening a domiciliary account has become increasingly important for individuals who receive or make payments in foreign currencies. Whether someone works with international clients, studies abroad, or frequently travels, having a dedicated foreign-currency account provides easier access to global transactions. Many banks now offer domiciliary accounts in currencies such as USD, EUR, or GBP, and the requirements for opening one are generally straightforward. Understanding these requirements in advance helps applicants avoid delays and prepares them to complete the process smoothly.
What a Domiciliary Account Really Means
A domiciliary account, often called a dom account, is a type of bank account that allows users to send, receive, and save money in foreign currencies. Unlike a local account that operates in the national currency, a domiciliary account is designed for financial activities involving global markets. This type of account is commonly used for international transfers, foreign school fees, overseas shopping, and business payments.
Banks usually permit withdrawals and deposits through cash, wire transfers, and international payment services. Since regulations vary slightly by region, the specific requirements may differ from one bank to another. However, the core documentation remains consistent, focusing on identity verification, proof of address, and financial traceability.
Core Requirements for Opening a Domiciliary Account
Before visiting a bank or submitting an online application, prospective account holders should prepare a set of essential documents. These items help the bank comply with financial regulations and verify the identity of the customer.
1. Valid Means of Identification
Identity verification is the first step in opening a domiciliary account. Most banks accept government-issued identification such as
- International passport
- National identity card
- Driver’s license
- Permanent voter’s card (in some regions)
The chosen form of identification must be valid and unexpired. Banks rely on these documents to confirm personal details, reduce fraud risks, and satisfy regulatory guidelines like Know Your Customer (KYC) and anti-money-laundering policies.
2. Proof of Address
Another important requirement is proof of residential address. This helps the bank confirm where the applicant resides, which is part of routine security screening and compliance procedures. Commonly accepted documents include
- Utility bills dated within the last three months
- Tenancy agreement or rent receipt
- Bank statement from another institution showing the applicant’s address
- Official government correspondence
Some banks accept electronic utility bills or digital statements, while others prefer printed copies. Applicants should check whether their preferred bank requires physical documents or allows online submissions.
3. Recent Passport Photograph
Banks typically request one or two recent passport-sized photographs. These photos become part of the bank’s customer record and support identity verification. Most institutions require a clear, color photograph with a plain background to ensure easy recognition.
4. Bank Verification Number or Equivalent
In some countries, a centralized identification system like a Bank Verification Number (BVN) is required. This number links a person’s bank accounts and provides an additional layer of security. Applicants without a BVN will need to complete that step before proceeding. Other regions may require a tax identification number or social security number instead.
These identifiers help the bank track financial activity, prevent duplicate identity profiles, and ensure compliance with national regulations.
5. Initial Deposit
Not all banks require an initial deposit, but many do. The amount varies depending on the account type and the chosen currency. For example, some institutions may request a small deposit in USD to activate a U.S. dollar domiciliary account. This deposit demonstrates the applicant’s readiness to use the account and establishes the starting balance.
6. Completed Application Form
Applicants must also fill out a domiciliary account form, either online or at a branch. This form typically asks for personal details, employment information, next-of-kin details, and the preferred currency for the account. Completing this form accurately helps prevent errors that could delay account opening.
Additional Requirements Some Banks May Request
Depending on regional laws or internal bank policies, there may be extra steps before opening a domiciliary account. While not always mandatory, these requirements appear frequently in certain banks and countries.
1. Reference Letters
Some banks ask for one or two reference letters from existing account holders or employers. These references help verify the applicant’s credibility and financial behavior. Though this requirement is becoming less common, it still applies in certain institutions.
2. Employment or Income Proof
To ensure the source of funds is legitimate, a bank may request evidence of employment or income. This could include
- Employment letter
- Payslips
- Business registration documents for entrepreneurs
- Tax records
This is particularly important when opening a high-transaction domiciliary account or one intended for frequent international transfers.
3. Foreign Currency Source Confirmation
Since domiciliary accounts involve foreign exchange, some banks require proof of how the applicant plans to fund the account. This could be international payments, foreign cash deposits, or correspondence with overseas partners. This step helps banks comply with anti-money-laundering rules.
Why People Choose to Open a Domiciliary Account
Beyond the standard requirements, many individuals open domiciliary accounts for specific practical benefits. These accounts offer greater flexibility for international payments compared to regular local accounts. They also help users avoid unfavorable exchange rates that may apply to automatic currency conversions.
For freelancers, remote workers, and digital nomads, a domiciliary account becomes essential for receiving payments from overseas clients. For students, it simplifies fee payments to international schools and universities. For business owners, it provides a reliable channel for global transactions, imports, and partnerships.
Steps to Open a Domiciliary Account
Once all requirements are gathered, the process is generally straightforward. Although each bank has its own workflow, the basic steps look similar across many institutions.
1. Prepare All Required Documents
Organizing documents in advance ensures the application moves quickly. Having copies both digital and physical can be helpful for banks with hybrid submission systems.
2. Visit the Bank or Use an Online Portal
Some banks allow partial or full online applications, while others require applicants to visit a branch. In-person visits are useful for biometric capture or identity verification.
3. Submit Documents and Complete the Form
The bank reviews each document to confirm authenticity and accuracy. Applicants must fill out the domiciliary account form and verify their details before submission.
4. Provide the Initial Deposit
If required, the first deposit must be made in the chosen foreign currency. This activates the account and allows the bank to finalize the setup.
5. Wait for Activation
Activation usually takes anywhere from a few hours to several days. Once complete, the bank provides account information, including the account number and instructions for funding and withdrawals.
Meeting Requirements
Opening a domiciliary account becomes much easier when applicants understand the requirements ahead of time. With proper identification, proof of address, photographs, verification numbers, and any additional documents required by the bank, the process typically goes smoothly. A well-prepared applicant can open a foreign-currency account quickly and begin enjoying the flexibility it offers for international transactions, travel, education, and business needs.