By Stanley Opara

Wednesday, 9 Feb 2011

The Central Bank of Nigeria said on Tuesday that it had observed the lack of cooperation and deliberate attempt by some players in the electronic payment market to frustrate the policy of offsite Automated Teller Machines for deposit money banks.

The apex bank said that its circulars and guidelines on ATM operations in Nigeria had been disregarded with impunity.

In the circular signed by the Director, Banking and Payments System Department, CBN, Mr. A.S. Atoloye, posted on the bank’s website on Tuesday, the CBN said it was necessary to sanitise the market by stipulating some penalties for non-compliance to the CBN directives and policies on ATM operations.

The CBN said an ATM deployer would be made to refund the full amount involved in any fraud perpetrated on its ATM for failure to provide video recordings on the disputed transaction when required.

It said failure to respond to the customer or to the CBN on ATM complaints within 72 hours would attract a fine of N50,000 per day for each complaint after the 72 hours until the response is received. It added that failure to resolve any ATM dispute with evidence of resolution within 14 days, would result in the deployer refunding the total amount involved in the fraud.

The apex bank said, “For non-compliance with Payment Card Industry Data Security Standards, a fine of N50,000 per week will apply until compliance is established. Non-compliance of ATM terminals with EMV levels 1 & 2 will attract a fine of N50,000 and temporary suspension of the affected terminal until compliance is established.

“Non-compliance with migration to EMV after September 30, 2010, will attract a fine of N50,000 and the issuer will bear full liability for any fraud perpetrated with the mag-stripe card.”

The CBN also said failure to provide audit trails and journals for ATM transactions would attract a fine of N50,000 per week, while failure to have two per cent of ATMs deployed with tactile graphic symbol for the use of visually impaired customers within the five-year time line, would attract a fine of N50,000 per week.

It, however, noted that failure to comply with the new policy of offsite ATM deployment would attract a fine of N50,000 per week until compliance is established.

“Failure to establish help desk contacts will attract a fine of N50,000 for each day of infraction. Non-functional help desk contacts will attract a fine of N50,000 for each day of infraction,” it stressed.

According to the CBN, for failure to disclose ATM surcharge to customers, a refund of the surcharge to the affected customers would be enforced by the CBN, and for lack of online monitoring mechanism and back-up power (inverter) for ATM, a fine of N50,000 per day will apply.

“An ATM without a camera installed will attract a fine of N50,000 and deactivation of the ATM until the camera is installed. A fine of N50,000 per day will be applied for late submission of returns/data on ATM frauds when required,” the apex bank said.

Other non-monetary sanctions that could be applied to the errant institutions, the apex bank said, included: naming the offenders at the Bankers’ Committee forum; suspension of offenders from participation in clearing operations until the infraction is corrected; and suspension of offenders from participation in some operations until infraction is corrected.

Source: Punch