CBN Mulls Office of Ombudsman for e-Payment Disputes

Central Bank of Nigeria (CBN) is to establish the Office of Ombudsman made up of representatives with significant degree of independence to investigate and address complaints as well as disputes of electronic payment between customers and service providers.

According to the CBN, the Office would consist of the representative of the Nigerian Communications Commission (NCC); Consumer Protection Council; Scheme Operators; Financial Institutions; and a member of National Payments System Committee.

The office of Ombudsman is to foster the growth of electronic payment system in Nigeria.

A circular with reference number BPS/DIR/GEN/CIR/01/018 posted on the bank’s website wants all deposit money banks, mobile money operators and payment service providers to forward inputs on or before January 21,  to the Director, Payments System Department of the CBN.

This is the exposure draft on the framework on e-Payments dispute arbitration put forward for stakeholders’ review.

 In the same vein, CBN has listed transactions that will be categorised as suspicious in the mobile money business.

In a paper entitled: Regulatory framework for mobile payment services in Nigeria, CBN said a mobile payment firm would be involved in suspicious transactions when it allows a single mobile account (individual) to receive a total volume of payments of more than 100 in a day.

 Also, any mobile payment (individual) that receives a total volume of payments of more than N1,000 in a day; and when any mobile payment (merchant) account that receives a total value of payments of N10 million and above in a day will be involved in ‘suspicious’ deals.

It said any company involved in suspicious transactions, has violated anti-money laundering regulations. CBN said it would be in the interest of a mobile payment company to disclose such transactions to avoid problems.

“The mobile payments scheme operator shall notify the Nigerian Intelligence Financial Unit (NFIU) of suspicious transactions as part of anti-money laundering regulations provided by CBN,” the report added.

It said the regulatory authorities have the right to change the criteria for suspicious transactions reporting on mobile payments as it deemed fit, adding that such amendments shall be communicated by appropriate channels to the mobile payment operators among other stakeholders.

It said: “CBN would ensure that appropriate processes and procedures are established for the purpose of monitoring compliance to the regulatory framework. Non-compliance with the provisions of the regulatory framework shall attract appropriate sanctions as may be determined by the Central Bank of Nigeria.”