Regulatory Alerts2011-01-13 | FPR/DIR/CIR/GEN/01/010 CGuidelines on Non-Interest Window and Branch Operations of Conventional Banks and Other Financial Institutions.
These guidelines establish rules for non-interest window operations in conventional banks and other financial institutions in Nigeria. Such windows are meant to offer financial services based on Islamic principles that avoid interest (riba). Highlights include the separate maintenance of records, mandatory Service Level Agreements between the window and the institution's other departments or units, and the prohibition of commingling funds from these windows with those from conventional operations. Additionally, a bank may seek to convert its non-interest window or branch into a full-fledged subsidiary but cannot reverse this decision by converting back to a conventional operation. These guidelines also specify that any additional requirements may be prescribed at any time by the Central Bank of Nigeria (CBN), and all enquiries should be directed to the Financial Policy & Regulation Department, CBN in Abuja.