CBN Unveils Guidelines on Disclosure,Transparency for Banks, Others

The Central Bank of Nigeria (CBN) has issued fresh guidelines to give effect to the Disclosure and Transparency Principle contained in the Consumer Protection Framework (CPF) for institutions under its regulation.

The guidelines, according to an 18-page document posted on the central bank’s website yesterday, provides 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 Bank, the objective of the guidelines was to protect consumers against 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 central bank and their agents, subsidiaries and associates. These include commercial banks, merchant banks, specialised banks, microfinance 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.

It pointed out that to promote transparency and enhance disclosure, financial institutions should ensure that contracts, offer letters, statements of account, notices and other documents (hereinafter referred to as the document” provided or made available to consumers are written in clear, legible and simple English language and in a minimum font size of 10; and state the name, contact details of the financial institution and the consumer.