…Introduces Guidelines for Electronic Fund Transfer

In line with its mandate to promote sound financial system in Nigeria, the Central Bank of Nigeria (CBN) has introduced regulations for the efficient operation of instant electronic funds transfer (EFT) services in the country. Part of the regulation states that EFTs are expected to maintain confidentiality of their transaction and information obtained in the course of discharging their responsibilities and shall ensure that these responsibilities extend to its employees, the CBN stated. The central bank stated this in a new circular posted on its website.

According to the CBN, an instant EFT service provider shall ensure compliance with the minimum standards issued by the CBN and as amended

from time to time; establish and implement operational guidelines specifying in clear terms the responsibilities of each party, operational rules and procedures (including dispute handling) and liabilities of parties in the event of loss of funds arising from negligence of any of the parties.

On the other hand, a sending entity in an instant EFT transaction is expected to provide name enquiry support to customers to minimise instances of wrong credits; not provide instant EFT services to walk-in customers without any bank account in Nigeria; fully secure debit against customer account before initiating transfer; among others.

Similarly, a customer is expected to provide accurate beneficiary account details for every EFT instruction and report problems arising from EFT transactions promptly to the sending/receiving entity.

“Whenever a credit has been erroneously applied to the customer’ account with the receiving entity, the customer shall promptly notify the receiving entity and authorise the reversal of such erroneous credit.