Amid Acquisition Controversy, Union Bank Sends Message to Customers on Transactions on Dorm Accounts
- Union Bank has sent a message to its customers informing them of deductions on foreign currency transactions
- The bank said it will begin deducting N50 for every N10,000 or its equivalent
- The bank said it will begin the charges from January 1, 2024, in compliance with the 2020 Finance Act
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The embattled Union Bank says it will begin N50 deductions for all international transactions as an electronic levy on January 1, 2024.
In an email to its customers, the bank stated that the deduction would apply to all foreign currency transactions equivalent to or more than N10,000.
Source: Twitter
The EMTL is introduced to boost government revenue
The Nigerian government introduced the Electronic Money Transfer Levy (EMTL) in the 2020 Finance Act to ramp up revenue.
The Finance Act amended the Stamp Duty Act to tap into the growth of electronic funds transfers in Nigeria to boost government revenue.
The EMTL is a single, one-off charge on electronic receipt or transfer of money sent in any deposit money bank or financial institution on any account on N10,000 and above.
According to TheCable, Revenue from the EMTL is shared among the three arms of government by the Federal Accounts Allocation Committee (FAAC).
Union Bank said in the email that the transaction fee followed a directive by the Federal Inland Revenue Service (FIRS) to all deposit money banks.
The Act said:
“The Federal Inland Revenue Service has directed all Banks to deduct and remit Electronic Money Transfer Levies (EMTL) on all foreign currency transactions equal to and above an equivalent of N10,000.00, effective January 1, 2024,” the email reads.
“This aligns with the Finance Act 2020 Section 48 and Stamp Duty Act 2004 Section 89A (1), as amended.
“Similarly, all banks have been directed to deduct and remit the EMTL on all qualifying foreign transactions from January 1, 2021 (when the Finance Act became effective) to December 31, 2023.
Banks announce plans to begin deductions on foreign currency transactions
Many banks in Nigeria have signaled interest in deducting funds from foreign currency transactions from domiciliary accounts.
The EMTL regulations were signed into law in December 2022 by Zainab Ahmed, former minister of finance, to provide additional revenue sources for the federal government.
Nigerian bank allegedly owned by Emefiele opens up on relationship with Union Bank
Earlier, Legit.ng reported that Titan Trust Bank, on Saturday, December 23, 2023, reacted to the special investigative report by the Jim Obazee-led panel into the activities of the Central Bank of Nigeria (CBN) under Godwin Emefiele, stating that there was no fraud in the acquisition of Union Bank.
Obazee submitted the report of his investigation into acquiring Union Bank and Keystone Bank to President Bola Tinubu in two letters dated December 20, 2023.
The investigation report had accused the former CBN boss of using fronts to acquire Union Bank for Titan Trust Bank Limited and Keystone Bank without evidence of payment.
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Source: Legit.ng
