CBN Issues Guidelines On Shared Service Arrangements For Banks And Other Financial Institutions

Summary

On 26th May 2021, the Central Bank of Nigeria  (CBN) issued a Circular informing banks and other financial institutions of its issuance of Guidelines on the operations of shared service arrangements between banks and other financial institutions in Nigeria and their parent company or group members ("Guidelines").  The Guidelines, which has an effective date of 1st June 2022, aims to set a supervisory expectation with respect to shared service arrangements, ensure the fees charged under such arrangements are reflective of the services rendered, ensure compliance with the Transfer Pricing Regulations in Nigeria, and reduce operational costs of recipients of those services.