Deposit Money Banks and Other Financial Institutions (OFIs) are to bear all costs associated with disclosures to customers except for deposits and withdrawals by or on behalf of the customer.
This was contained in the Consumer Protection framework guidelines on Disclosure and Transparency released by the Central Bank of Nigeria (CBN) on Monday.
The Guidelines provide minimum Disclosure and Transparency requirements for Financial Institutions under the regulatory purview of the CBN to ensure they provide consumers with all material and relevant information regarding their business relationship in a clear and transparent manner.
According to the CBN, the objective of the Guidelines 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 apply to all transactions by financial institutions licensed and regulated by the CBN and their agents, subsidiaries, and associates. These include Commercial Banks, Merchant Banks, Specialised Banks, Micro-finance Banks (MFBs), Development Finance Institutions (DFIs), Finance Companies (FCs), Bureaux-de-Change (BDCs), Primary Mortgage Banks (PMBs), 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.
These financial institutions are expected to inform consumers of applicable and indicative foreign exchange rates through customer engagement points and advise consumers to always check the rates before consummating foreign exchange transactions.
They are to ensure that the disclaimer “Terms and Conditions Apply” or any phrase conveying a similar meaning shall only be used if the terms and conditions have been disclosed in the contract document or in other media accessible by the customer.
The financial institution shall at all times, draw the consumer’s attention to such disclosure, the Guidelines stated.
