16 banking transactions exempted from CBN’s cybersecurity levy
As per a circular issued by the apex bank on Monday, the implementation of this levy is scheduled to start in two weeks.
The circular was addressed to all commercial, merchant, non-interest, and payment service banks, among other financial institutions.
What the CBN said:
“The levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution. The deducted amount shall be reflected in the customer’s account with the narration, ‘Cybersecurity Levy’,” the apex bank said.
16 banking transactions that are exempted from the CBN’s new cybersecurity levy:
1)Loan disbursements and repayments
3)Intra-account transfers within the same bank or between different banks for the same customer
4)Intra-bank transfers between customers of the same bank
5)Other Financial Institutions instructions to their correspondent banks
7)Banks’ transfers to CBN and vice-versa
8)Inter-branch transfers within a bank
9)Cheque clearing and settlements
11)Banks’ recapitalisation-related funding – only bulk funds movement from collection accounts
12)Savings and deposits, including transactions involving long-term investments such as Treasury Bills, Bonds, and Commercial Papers.
13)Government Social Welfare Programmes transactions e.g. Pension payments
14)Non-profit and charitable transactions, including donations to registered non-profit organisations or charities
15)Educational institutions’ transactions, including tuition payments and other transactions involving schools, universities, or other educational institutions
16)Transactions involving bank’s internal accounts such as suspense accounts, clearing accounts, profit and loss accounts, inter-branch accounts, reserve accounts, nostro and vostro accounts, and escrow accounts.
