Several banks have implemented a new requirement for their customers applying for Type A transactions, urging them to furnish tax clearances for the preceding three years.

The Central Bank of Nigeria devised Type A, which facilitates payments for various services such as school fees, medical expenses, etc. It enables customers to acquire funds from the CBN or interbank rates.

In an email notification sent to its customers, Standard Chartered announced that starting this month, individuals would need to provide their Tax Clearance Certificates (TCC) for the past three years when seeking foreign exchange transactions through banks.

The ” Additional Update On Tax Clearance Certificates” stated, “Following our previous communication regarding the submission and verification of Tax Clearance Certificates for all FORM A applications, we wish to remind you of the requirement to furnish your updated tax clearance certificates.”

Similarly, Fidelity Bank and Stanbic IBTC have issued similar circulars to their customers, urging them to provide TCCs to approve foreign exchange requests, including Type A transactions.

A Tax Clearance Certificate is evidence of compliance with tax obligations, ensuring adherence to the provisions outlined in Section 85 (2) of the Personal Income Tax Act, Cap P8, LFN 2004 (as amended).