In a recent development in Nigeria, banks are now requiring customers to provide a three-year tax clearance certificate when seeking foreign exchange transactions. This new requirement, announced by Standard Chartered Bank in a recent notification to customers, is set to take effect on April 1, 2024.
Customers applying for forex transactions through ‘Form A’ will now need to submit proof of their tax compliance for the past three years. This move is aimed at ensuring transparency and compliance with tax regulations.
Other major commercial banks in Nigeria, including Fidelity Bank and Stanbic IBTC, have also issued similar circulars to their customers regarding this new requirement. The mandate applies to both new and existing Form A applications processed on the Central Bank of Nigeria’s trade monitoring system, TRMS.
All tax clearance certificates submitted by customers will undergo verification in collaboration with state tax authorities before any application is approved. This measure is designed to prevent fraud and ensure that customers are meeting their tax obligations.
This new regulation highlights the importance of tax compliance in foreign exchange transactions and underscores the commitment of Nigerian banks to upholding regulatory standards. Customers are advised to ensure they have their tax affairs in order to avoid any delays or complications in their forex transactions.
