Regulatory Alerts2009-06-11 | BOD/RTP/GEN/RVP/01/001AGuidelines on Transaction Switching Services
The guidelines provided by the Central Bank of Nigeria set out specific rules, standards, and responsibilities for the establishment and operation of electronic payment systems within the country. The primary goal is to promote secure and efficient payments through these systems while mitigating risks associated with fraudulent activities, non-compliance, and money laundering. The key points highlighted in these guidelines include the mandatory requirement for all financial institutions and entities participating in switching services to adhere to the rules set forth by the Central Bank of Nigeria. These rules cover various aspects such as network interoperability, offline/online transactions, fees and charges, and penalties for non-compliance. Furthermore, it emphasizes the importance of adopting international security standards like PCI DSS and PCI PED to ensure adequate data protection measures are in place. Additionally, it highlights the responsibility of switching companies and their member institutions to prevent their networks from being used for purposes related to money laundering or other financial crimes. The guidelines also discuss the importance of interconnectivity between different payment systems, which allows for a seamless experience for cardholders while using electronic payment instruments across different networks. It further outlines specific terms and definitions that are crucial in understanding the context and purpose of these guidelines. Overall, these guidelines aim to create a secure and efficient electronic payment ecosystem within Nigeria by setting clear expectations and requirements for all parties involved.