Regulatory Alerts2008-10-13 | TED-FEM-FPC-GEN-01-109-08Additional Information Requirements and Directive on Western Union Money Transfer Operations in Nigeria (WUMT)
In light of identity concerns, the Central Bank of Nigeria requires banks to strictly follow additional safeguards for Western Union Money Transfer (WUMT) operations in Nigeria. These include collecting funds only in designated towns, investigating customer complaints within a week before referring them further, and verifying beneficiary photographs upon payment collection. Banks must adhere to these measures or face liability and refund obligations for incorrect payments. O. I. Imala, Director of Banking Supervision.
09-61636401 09-61636418 BSD/DO/CIR/GEN/V.2/011 October 10, 2008 CIRCULAR TO ALL BANKS IN NIGERIA ADDITIONAL INFORMATION REQUIREMENTS AND DIRECTIVE ON WESTERN UNION MONEY TRANSFER OPERATIONS IN NIGERIA (WUMT) Given the absence of a fool-proof means of personal identification and the need to ensure that WUMT operations in Nigeria are carried out in a transparent and safe manner, banks are required to put in place the following additional safeguards and communicate these to WUMT International and their customers:
- Funds transferred shall only be collected in the designated town for payment and nowhere else; 2. Banks shall investigat e customers complaint within one week before referring the beneficiary to the sender for onward complaint to WUMT International; and 3. The copy of beneficiary's photograph forwarded by WUMT to the banks should be personally produced by the beneficiary at the point of collection before payment is made.
In cases where these safeguards are not strictly applied, banks will be held liable and shall be made to refund any amount paid to wrong beneficiaries. O. I. IMALA DIRECTOR OF BANKING SUPERVISION