List of transactions exempted from new CBN's 0.5% cybersecurity levy

The Central Bank of Nigeria has instructed banks to initiate a transaction cybersecurity fee.

Pulse reported that a circular released on Monday, May 6, stated that the levy's enforcement would commence in two weeks.

The directive applies to all types of banks, including commercial, merchant, non-interest, and payment service banks.

This move follows up on previous communications from the central bank dated June 25, 2018 (Ref: BPS/DIR/GEN/CIR/05/008) and October 5, 2018 (Ref: BSD/DIR/GEN/LAB/11/023), regarding compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015.

However, to ease the transition, The Nation reported that some transactions would be exempted from this new policy introduced by the apex bank, providing a sense of relief for many.

Here are the list transactions below:

1. Loan disbursements and repayments

2. Salary payments

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 (OFIs) instructions to their correspondent

6. Banks Interbank placements

7. Banks' transfers to CBN and vice-versa

8. Inter-branch transfers within a bank

9. Cheques clearing and settlements

10. Letters of Credits (LCs)

11. Banks' recapitalization 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 Programs transactions e.g. Pension payments

14. Non-profit and charitable transactions including donations to registered nonprofit organisations or charities.

15. Educational Institutions transactions, including tuition payments and other transaction 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