CBN Orders Cybersecurity Levy Deductions on Electronic Transfers

The Central Bank of Nigeria, CBN has directed deposit money banks in the country to start charging 0.5 percent cybersecurity levy on transactions.
This was contained in a circular dated May 6, 2024 by the apex bank to all commercial, merchant, non-interest and payment service banks as well as mobile money operators and payment service providers.
The apex bank said that the implementation of the levy would start two weeks from the date of the circular, adding that the levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution.
 According to the circular, exempted from the levy include loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, intra-bank transfers between customers of the same bank. Also exempted from the levy were inter-branch transfers within a bank, cheque clearing and settlements, ⁠Letters of Credits, ⁠Banks’ recapitalisation-related funding only bulk funds movement from collection accounts, savings and deposits including transactions involving long-term investments, among others.
Meanwhile, the apex bank recently stopped fintechs firms from onboarding new customers and directed banks to deduct 0.375 percent stamp duty charge on all mortgaged-backed loans and bonds.

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