Central Bank of Nigeria (CBN), has directed the Nigeria Inter-Bank Settlement System (NIBSS) to debit the settlement accounts of commercial banks that receive fraud proceeds.
This is in an effort to curb fraud in the financial services sector,
So starting this month, CBN instructed the Nigeria Inter-Bank Settlement System to deduct from the accounts of any commercial bank that ends up with fraudulent proceeds.
NIBSS, incorporated in 1993, owned by all licensed banks including the Central Bank of Nigeria and it clearing house, handling inter-bank payments in order to remove potential bottlenecks associated with inter-bank funds transfer and settlement.
According to the CBN, if a bank doesn’t catch a fraudulent transaction or if they can’t prove they did their due diligence, they will get charged.
This is meant to push banks to step up their fraud detection game and is heavily leaning on the whole Know Your Customer (KYC) thing, which we all know is crucial for keeping the system secure.
