Amid acquisition controversy, Union Bank sends message to customers on transactions on dorm accounts

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.

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. T

he 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.