CBN to sanction banks, OFIs for e-payment infractions.

Fashion home! CBN

The Central Bank of Nigeria head office, Abuja.

The Central Bank of Nigeria (CBN), yesterday, said it will henceforth sanction banks and other financial institutions (OFIs) that violate regulations guiding end-to-end electronic payment of salaries, pensions and other remittances, suppliers and revenue collections.

The apex bank disclosed this in the Revised Guidelines for the transaction in which it announced specific sanction for different infractions deemed to be impediments to smooth transactions.

The new guideline stated: “Imposition of constraints to hinder electronic payment into a beneficiary’s accounts contrary to Anti Money Laundering/Know Your Customer (AML/ KYC)  and  other related regulation attracts the penalty of N1,000 for each transaction thereof not processed on a bank approved epayment platform due to constraints imposed by a Deposit Money Bank (DMB) or payment scheme.

Transactions not consummated within the timelines prescribed in the [circular] attract a penalty of N1, 000 per transaction or any part thereof not consummated within stipulated timeline. “For non-return of unapplied funds to payer’s account within 24 hours,  funds will  be returned at the prevailing MPR for the period and report of infraction in annual report, while other penalty as may be applicable in the Bank Regulation on Operation of Electronic Payment Channels in Nigeria. “Non-provision of monthly report on end-to-end e-payment of salaries, pensions, suppliers & taxes to the CBN attracts N5,000 penalty for each day for which report is not provided to the CBN. “Submission of false or in accurate reports attracts N250, 000 fines and a warning letter to the Managing Director (MD). “The use of third party epayment solution not approved by CBN attracts fine of N2.5 million for a DMB and N1 million for an OFIs  on every repeated occurrence, as well as  termination of the  use of the unapproved end-to-end epayment solution, and warning letter to the Managing Director.”