Banking
An Overview of Legal Requirements For a Bank’s Website
By Gbolahan Oluyemi
Websites create an online presence for businesses and serve as a valuable tool to enhance e-commerce, customer engagement, branding, marketing, and lead generation. A website provides the bank customers with information on branch location, the composition of the bank’s management team, product features, forms, and terms and conditions of service.
Aside from the branding and customer information, banks are legally required to publish certain information on their website. This article considers some of the information banks are mandated by law to publish on their respective websites. Additionally, banks may explore fractional general counsel services to navigate the intricate legal landscape efficiently, ensuring compliance and robust risk management.
- A bank is required to publish its foreign exchange, lending, and deposit rates on its website. This is because section 22 (1) of the Banking and Other Financial Institutions Act (BOFIA) directs all banks (except non-interest banks) to publish information on foreign exchange rates, lending and deposit rates on their respective websites, failing which such Bank will be liable to a penalty of not less than N5,000,000 and an additional N100,000 for every day during which the contravention continues.
- BOFIA require banks to disclose their obligations to report suspicious transactions on their respective websites, failing which the bank will be liable to a penalty of not less than N5,000,000 and an additional N100,000 for every day during which the contravention continues.
- A bank is required to publish its certificate of occupancy on its website. The bank is also required to publish its approved audited accounts and financial statements. Section 22 (1e) of BOFIA mandates these obligations and imposes a penalty of not less than N5,000,000 and an additional N100,000 for every day during which the contravention continues.
- The Nigerian Data Protection Regulation 2019 impose a duty on banks to publish a privacy policy on all data-collecting platforms (which may include a website). The privacy policy should address at minimum the items listed in Article 2.5 of the Nigerian Data Protection Regulation 2019 which include:
- what constitutes the Data Subject’s consent;
- description of collectable personal information;
- purpose of collection of Personal Data;
- technical methods used to collect and store personal information, cookies, JWT, web tokens etc;
- access (if any) of third parties to Personal Data and purpose of access;
- available remedies in the event of violation of the privacy policy;
- the time frame for remedy.
- Another piece of information required on a bank’s website is the details and location of Automated Teller Machines (ATM) for persons with visual impairment. Article 1.1.1 (G) of the Central Bank of Nigeria (CBN) guidelines on operations of electronic payment channels in Nigeria requires that 2% of ATMs deployed should have tactile graphic symbols for the use of visually impaired customers. The location of the specialised ATMs should be published on the bank’s website.
- Banks deploying agent banking by providing services to customers through a third party (agent) are required by Article 9 of the CBN Guidelines for the regulation of Agent Banking and Agent Banking relationships in Nigeria to publish an updated list of all their agents on their websites.
- The CBN Corporate Governance Guidelines for Commercial, Merchant, Non-interest and Payment Service Banks in Nigeria 2023 require publicly quoted banks to publish a summary of their risk management policies. Further, all Banks are mandated by the guideline to publish a summary of the Bank’s insider trading and related party transaction policy on their website.
In view of the above, the content of a bank’s website is not solely a technology or branding affair. There are legal issues to be considered in populating content for a bank’s website. In all, banks are mandated by the CBN Guidelines on Disclosure and Transparency to ensure that their websites and other information dissemination channels are functional and regularly updated with the current product features and service offerings.
Banks are encouraged by CBN guidelines to communicate with stakeholders via their website and also host a stakeholder communication policy on their website.
By Aduragbemi Omiyale
The Central Bank of Nigeria (CBN) has reaffirmed that the old and new Naira notes will continue to be used for financial transactions in the country beyond December 31, 2024.
There had been rumours that the old and redesigned N200, N500, and N1,000 banknotes would no longer be legal tender from Wednesday, January 1, 2025, because the central bank would phase out the notes in compliance with a Supreme Court judgement of November 29, 2023.
But the apex bank, in a statement signed by its acting Director of Corporate Communications, Mrs Hakama Ali, on Friday, clarified that the apex court’s judgement being cited did not authorise the bank to phase out the banknotes by the end of this year.
According to her, the court allowed the CBN to leave the old and new notes to be used concurrently until it decides to gradually phase out the former.
The central bank’s spokesperson urged members of the public to disregard claims suggesting the old series of these denominations would cease to be valid at the end of this year.
She urged them to continue to accept all Naira notes for daily transactions, encouraging banks to also adopt alternative payment methods such as electronic channels to reduce the pressure on physical cash usage.
“The Central Bank of Nigeria (CBN) has observed the misinformation regarding the validity of the old N1000, N500, and N200 banknotes currently in circulation.
“In line with the bank’s previous clarifications and to offer further assurance, the CBN wishes to reiterate that the subsisting Supreme Court ruling granted on November 29, 2023, permits the concurrent circulation of all versions of the N1000, N500, and N200 denominations of the Naira indefinitely.
“For the avoidance of doubt, all versions of the naira, including the old and new designs of N1000, N500, and N200 denominations, as well as the commemorative and previous designs of the N100 denomination, remain valid and continue to be legal tender without any deadlines,” the statement noted.
By Adedapo Adesanya
Access Bank Plc, the banking subsidiary of Access Holdings Plc, has entered into a binding agreement with South African-based Bidvest Group Limited for the acquisition of 100 per cent equity stake in Bidvest Bank Limited.
The deal for the 24-year-old South African lender is due to be completed in the second half of 2025, upon regulatory approval.
This shows Access Bank’s further expansion plans in line with goals set by its late founder, Mr Herbert Wigwe.
The agreement to acquire 100 percent stake in Bidvest Bank reflects Access Bank’s commitment to strengthening its footprint in South Africa and consolidating on its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.
Bidvest Bank, founded in 2000 is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products.
As of its year ended June 2024, Bidvest Bank reported total assets equivalent of $665million and audited profit before tax of $20million.
Upon conclusion of this acquisition, Bidvest Bank will be merged with the bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.
This is coming just as the bank opened a new branch in Malta as part of efforts to focus on international trade finance after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
The Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
By Modupe Gbadeyanka
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
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