CBN issues new guidelines to banks on customers transactions

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The Central Bank of Nigeria (CBN) has issued a new guideline to all commercial banks and financial institutions demanding a prompt notifications to customers on all transactions on their accounts as part of their contractual obligations.
The new guidelines on Disclosure and Transparency issued in Abuja said financial institutions must notify their customers about the amount and date of the transaction as well as the account balance.
Besides, the transaction narrations in account statements must state clearly the nature of the transaction, date, payer or payee, transaction channel and location.
The guidelines include details on how financial institutions would henceforth handle general information to their customers as they relate to advertisement, pre-contractual and contractual disclosures, credit facilities, deposits,
This is pursuant to the powers conferred on the CBN by Sections 2 (d) and 33 (1) (b) of the CBN Act, 2007 (as amended) and Section 57 (2) of the Banks and Other Financial Institutions Act [BOFIA] of 2007, as amended.
The guidelines were contained in the Consumer Protection Framework (CPF) for financial institutions regulated by the CBN.
The affected financial institutions include commercial banks, merchant banks, specialized banks, micro-finance banks, development finance institutions, finance companies, bureaux-de-change, and primary mortgage banks.
Others credit bureaux, mobile money operators, payment service banks, switching companies, payment solution service providers, payment terminal service providers, non-bank acquirer, super agents and mobile money operators.
The CBN said the documents is to protect consumers against the provision of inadequate, misleading or failure to disclose material and relevant information and generally guard against lack of transparency by Financial Institutions in their dealings with consumers
The guidelines are to ensure consumers provided with all material and relevant information regarding their business relationship in a clear and transparent manner.
On contractual disclosures, the new guidelines demand that any proposed and final contract must contain information on key features, risks of the financial product or service, tenor of the contract as well as nature, amount and method of calculation of any interest, fee or charge and when it is payable.
Other details include any changes that may be made to the contract terms, and how the consumer will be informed of such changes; information on how to lodge a complaint to the financial institution and how to escalate complaint to the CBN where necessary.
Also, the consumer must be provided with monthly statements of account for all products and account types, including loan accounts, special accounts and other associated accounts at no cost to the consumer

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