Regulatory Alerts2022-06-02 | PSM/DIR/PUB/CIR/01/006Re: Circular on the Review of Operations of the NIBSS Instant Payments System and other Electronic Payment Options with Similar Features
The Central Bank of Nigeria has issued a circular to all banks and payment service providers, directing them to implement enhanced security measures for online funds transfers. Banks are now required to accept indemnity from customers for highly secured online funds transfers above specified thresholds and to provide customers with the option of electronic or paper indemnity. This directive aims to strengthen the security and integrity of electronic payment systems in the country.
CENTRAL BANK OF NIGERIA Central Business District, Cadastral Zone AO P.M.B. 0187, Garki Abuja.
PAYMENTS SYSTEM MANAGEMENT DEPARTMENT Tel: 09 462 38300, 09 462 38346 e-mail: psmd@cbn.gov.ng website: www.cbn.gov.ng Ref: PSM/DIR/PUB/CIR/01/006 May 26, 2022 To: All Banks and PSPs Re: Circular on the Review of Operations of the NIBSS Instant Payments System and other Electronic Payment Options with Similar Features Further to the Circular on the above subject referenced BPS/DIR/GEN/CIR/01/011 and dated August 13, 2014, banks are hereby required to comply with the following:
- Accept indemnity from customers for 'Highly Secured Online Funds Transfer above N1m for individual and N10m for corporate, subject to a maximum of N25m (Individual) and N250m (Corporate);
- Provide customers with the option of electronic or paper indemnity based · on the customer's preference; 3. Implement electronic indemnity with stricter controls requiring biometric verification of identity; 4. Adhere to multiple factor authentication (MFA) for 'Highly Secured Online Funds Transfer';
- Inform and educate customers on the use of indemnity to increase transaction limits where applicable.
Please be guided accordingly. Thank you.
Musa I. Jimoh Director, Payments System Management Department