CBN issues new guidelines on e-payment, fintech development - THE GUARDIAN
By Geoff Iyatse
The Central Bank of Nigeria (CBN) has issued fresh guidelines aimed at strengthening the payment system and development of other disruptive technologies relating to financial services.
The regulatory frameworks are contained in two separate documents issued by the apex banks. The documents are created to address challenges in regulatory sandbox and quick response (QR) code payment operations in the country.
â€œIn furtherance of its mandates to, ensure the safety and stability of the Nigerian financial system, promote the use and adoption of electronic payments and foster innovation in the payments system, the Central Bank of Nigeria hereby issues the framework for QR code payments in Nigeria,â€ the CBN said in one of the documents that detailed the operational relationships among issuers, acquirers, merchants, other financial service providers and customers.
In the document, the Bank spelt out risk management issues and the reporting processes while allocating responsibilities to relevant participants in the value chain, warning that it â€œshall apply appropriate sanctions to any party that fails to comply accordinglyâ€.
It stated: â€œIssuers and acquirers shall agree to minimum due diligence guidance for merchant onboarding without prejudice to know your customers/anti-money laundering (KYC/AML) requirements of the Bank… Issuers and acquirers shall ensure behavioural monitoring and fraud management systems are implemented to prevent, detect and mitigate fraud and money laundering.
â€œIssuers shall provide quarterly risk management assessment reports to the Director, Payments System Management Department. The risk management assessment report shall include, among others, fraud reports, vulnerabilities assessment and risk-mitigating measures introduced.â€
According to the CBN, participants shall ensure full interoperability of QR code scheme in Nigeria and work towards achieving its seamless operation.
The regulator left the determination of transaction limit to issuers alongside customers. It, however, directed that the threshold should be set based on the outcome of a customerâ€™s risk profile assessment.