Regulatory Alerts2010-02-03 | BOD/PSV2020/OPS/152BDraft Payment System Bill
The Central Bank of Nigeria has enacted a law known as the Payments Systems Management Act, 2010 which is designed to regulate and supervise the operations of payment systems in Nigeria. Here are the main provisions of the Act: 1. The CBN is empowered to issue authorizations for the operation of payments systems. It can grant these authorizations upon satisfactory compliance with the requirements specified under this act. 2. Authorization holders must furnish information and records relating to their operations when required by an officer from the CBN. Failure to comply with this provision is a punishable offense, subject to fines or imprisonment. 3. The CBN can issue directions to authorization holders in order to achieve any of its objectives under this Act. Failure to comply with these directions within the stipulated time constitutes an offense, punishable by withdrawal of authorization granted. 4. Information disclosed to unauthorized persons is prohibited unless expressly authorized by the CBN. Violation attracts penalties such as imprisonment or fines that are equal to twice the damages caused. 5. The Act provides for monetary penalties where there's a contravention of any provision in this act, non-compliance with directions from the CBN, or non-payment of imposed penalties within thirty days. 6. Officences committed by companies may also implicate their directors, managers, secretaries, and other officers if they are found to have been involved in the contravention through consent, connivance, or negligence. 7. The CBN has the power to impose fines on contravening entities. This fine can be up to three million Naira, or twice the amount involved in the breach (where quantifiable), and an additional penalty of five hundred thousand Naira per day for continuing offences. 8. This law may be cited as the Payments System Management Act, 2010.