Regulatory Alerts2015-12-01 | BPS/DIR/GEN/CIR/01/006CIRCULAR ON CONPLIANCE WITH DUE DILIGENCE IN THE DEPLOYMENT OF POINT OF SALE (POS) TERMINALS
The Central Bank of Nigeria has issued a circular to Deposit Money Banks (DMBs) regarding due diligence in the deployment of Point-of-Sale (POS) terminals. They have observed that banks deploy POS terminals without conducting proper Know Your Customer (KYC) checks on merchants, which they view as unethical and unacceptable. To reduce fraudulent activities, DMBs are mandated to: 1. Conduct KYC on all their merchants with POS. 2. Set merchant limits based on the volume of business/commercial activities. 3. Set customer limits based on card class. 4. Merchants must enforce cardholder's identification for transactions above a specific limit, as agreed between the bank and the merchant. 5. Failure to comply will result in appropriate sanctions.