New Banking Rule: FG apologizes to Nigerians, makes further clarification

President Buhari led government has retract on its earlier issued guidelines on the new banking Self-Certification Forms.

The Federal government says the notice does not apply to everyone.

OnyxNews Nigeria reported on Thursday night that FG ordered all persons holding accounts across financial institutions and insurance firms, to complete and submit self-certification forms to their respective financial institutions.

It stated, “This is to notify the general public that all account holders in Financial Institutions (Banks, Insurance Companies, etc.) are required to obtain, complete, and submit Self – Certification Forms to their respective Financial Institutions. Persons holding accounts in different financial institutions are required to complete & submit the form to each one of the institutions. The forms are required by the relevant financial institutions to carry out due diligence procedures, in line with the Income Tax Regulations 2019.”

But, on earlier today Friday, after receiving unexpected much tackles on social media, FG attempted a clarification stating, “We apologize for the misleading tweets (now deleted) that went up yesterday, regarding the completion of self-certification forms by Reportable Persons,” and that, “the FIRS will clarify Nigerians on the objectives of the directive.”

We apologize for the misleading tweets (now deleted) that went up yesterday, regarding the completion of self-certification forms by Reportable Persons. The message contained in the @firsNigeria Notice does not apply to everybody. FIRS will issue appropriate clarification shortly pic.twitter.com/KBiPh0lCwJ

— Government of Nigeria (@NigeriaGov) September 18, 2020

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Federal Inland Revenue Service Chairman, Muhammad Nami.

FIRS earlier today made a statement, that the guidelines are only for non-residents, and people paying tax in more than one country.

This is to clarify the publication for financial institutions account holders in Nigeria to complete the self certification form, pursuant to the Income Tax (Common Reporting Standard) Regulations 2019 which is for the fulfilment of Automatic Exchange of Information Requirements. https://t.co/2H6Hedbnv3

— Federal Inland Revenue Service NG (@firsNigeria) September 18, 2020

The statement read: “The Self Certification Form is basically to be administered on Reportable persons, holding accounts in Financial institutions, that are regarded as “Reportable Financial Institutions” under the CRS. Reportable persons are often non-residents and other persons, who have a residence for tax purposes in more than one jurisdiction or Country.”

“The information that indicates an account holder is a resident for tax purposes in more than one jurisdiction is expected to be available to Financial Institutions during account opening processes, for the KYC and AML purpose.”