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Banks Lost N1.63Bn to E-fraud in 2017 – CBN Report

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The number of recorded electronic fraud cases in the banking industry increased by 28 per cent last year, rising from 19,531 in 2016, to 25,043, resulting in a loss of N1.63 billion, the Central Bank of Nigeria (CBN) has said.

The apex bank stated this in its draft 2017 Annual Report released on Thursday.

The banking watchdog, however, noted that the number of actual losses declined by 24.0 per cent relative to that of 2016.

According to CBN, the attempted fraud value also declined last year, falling to N4.03 billion from N4.37 billion in 2016.Interestingly, the study stated that the volume and value of electronic payments last year “rose by 60.0 and 39.7 per cent to 1,478.5 million and N99,292.3 billion, respectively, compared with 941.8 million and N71,100 billion in 2016.”

“The rise was attributed to increased consumer awareness and confidence in e-payment channels,” it added.

Besides, the CBN disclosed that following tough measures it put in place to ensure that financial institutions desist from making deductions from their customers’ accounts through excess and unauthorised charges, the number of complaints received from consumers against financial institutions fell by 11.5 per cent, from 2,656 in 2016 to 2,349 in 2017, with claim value of N22.23 billion, $2.57 million and €6,940.00.

“Of this number, complaints against banks and other financial institutions (OFIs) accounted for 2,284 (97.2%) and 65 (2.8%), respectively, compared with 96.0 and 4.0 per cent in 2016,” the apex bank explained.

The complaints included Automated Teller Machine (ATM) dispense errors, based on use of debit/credit cards, excess charges, disputes on international trade guarantees, loans, unauthorised charges and account management issues.

The CBN revealed that following mediation meetings and other measures it facilitated to resolve complaints, 2,510 of such grievances were resolved and closed in 2017, compared with 2,085 in 2016, leading to financial institutions refunding N5.98 billion, $2.55 million and €6,940.00.

Similarly, the banking watchdog stated that refunds based on directives and recommendations from compliance examination was N7.86 billion, adding that it imposed sanctions on 17 banks for failure to comply with regulatory directives.

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Besides, the CBN also disclosed that last year; it conducted two examinations to ensure compliance with the provisions in the Consumer Protection Regulations and the Guide to Bank Charges.

It explained that the first examination was focused on compliance with previous post-examination directives, resolution of outstanding complaints, insurance charges on facilities; alignment of internal policies with provisions of the Consumer Protection Framework; and debits on dormant accounts, among others.

“Overall, the exercise revealed the following compliance levels in each focus area: previous post-examination directives (52.6%); resolution of outstanding complaints (26.2%); 2.0 per cent maximum cap on lending fees (50.0%); insurance charges on facilities (66.7%); and debits on dormant account (42.1%).

“Compliance levels, in respect of the focus areas for the second examination, were: previous post-examination directives (62.0%); resolution of outstanding complaints (24.6%); charges on debit cards (91.0%); and charge on status enquiries at the instance of customer (52.0%).”


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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E-Financial

CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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