Transcription of Guidelines for the Regulation of Agent Banking and Agent ...
1 1 CENTRAL BANK OF NIGERIA Guidelines FOR THE Regulation OF Agent Banking AND Agent Banking RELATIONSHIPS IN NIGERIA 2 SECTIONS 1. Definitionfgentanking2. Monitoringofgentankingrelationships3. MinimumquirementsfgentankingContract4. Agentligibility 5. Agentueiligence6. Operationalndransactionalimits7. Rulesnxclusivityfgents8. Supervisionfgents9. Publicationfistfgentsndocations10. Relocation,ransferndosurefgentremises11. Datandtworkecurityquirements12. Third-Partyerviceroviders13.
2 Riskanagement14. Moneyaundering 3 (AML/CFT)equirements;15. Disclosures17. Brandingnddvertisement18. Disputesolution19. Annualporting20. Remedialeasures22. 4 Guidelines FOR THE Regulation OF Agent Banking AND Agent Banking RELATIONSHIPS A. Preamble InexerciseofthepowersconferredontheBankb ySection2(d)oftheCentralBankofNigeriaAct ,2007andSection57(2)oftheBanksandOtherFi nancialInstitutionsAct(BOFIA),LawsoftheF ederationofNigeria,2004toissueguidelines forthemaintenanceofadequateandreasonable financialservicestothepublic,theCentralB ankofNigeria(CBN) Objectives Thebjectivesfheguidelinesreo: provideminimumtandardsndequirementsorage ntankingoperations; enhanceinancialnclusion.
3 And provideforagentbankingasadeliverychannel forfferingbankingservicesinacostffective anner. 5 1. DEFINITIONS Agent Banking Agentbankingistheprovisionoffinancialser vicestocustomersbyathirdparty( Agent )onbe halfofalicenseddeposittakingfinancialins titutionand/ormobilemoneyoperato(princip al).Principal Fothepurposesofthisdocumenttheprincipals hallatalltimesbeadeposittakingFinancialI nstitutionand/orMobileMoneyOperator(MMO) . Agent Anagentisanentitythatisengagedbyafinanci alinstitutiontoprovidespecificfinancials ervicesonitsbehalfusingtheagent Fothepurposeofthisguidelines;anassociate ofanFImaybeanemployee(currentorformer),h is/herrelations,includingspouse,parent,c hildrenoanypersonwithapecuniaryinterestw iththeFinancialInstitution(FI).
4 Premises Institution (FI) Fothepurposesofthisdocumentafinancialins titutionshallbeanyinstitutionlicensedbyt heCBNtoacceptdepositsandconductbankingoo thefinancialservicesasdefinedbyBOFIA andthelicensedMobileMoneyOperatorsThird Party Service Providers Banking Database Thisshallmeanthedatabaseofallapprovedage ntbankingrelationships,locations, Agent ASoleagentisanagentwhodoesnotdelegatepow erstootheagentsbutassumesagencyrelations hip/responsibilitybyhimself. 6 Sub- Agent model led model ThismeansAnti-MoneyLaunderingandCombatin gFinancingTerrorismKYC KnowYouCustomerProprietor and Partner A proprietor o partner undethisGuidelineshall, Fopurposesofthisdocument,receiptsshallin cludeallformsofdurableandverifiableackno wledgementsincluding,paper, Time Transactions Thismeanstheprocessingofinstructionsonan individualbasisatthetimetheyarereceivedr athethanatsomelatetime.
5 2. APPLICATION AND APPROVAL REQUIREMENTS , Banking &PaymentsSystemDepartment,CBN, 7 InformationrequiredbytheCBNfoagentbankin glicenceshallinclude:a. Nameoftheapplicantb. PostalAddress/emailc. BusinessAddressd. Telephonenumbere. CompanyRegistrationNumber/certificatef. FeasibilityStudyfotheagentrelationship Documentary requirements Allapplicationsfoagentbankingshallbeaddr essedtotheDirector, Banking &PaymentsSyste mDepartment,CBN,Abujaandaccompaniedwitht hefollowing:i. BoardApprovalii. Adocumentthatshalloutlinethestrategyofth eFIincludingcurrentandpotentialengagemen ts,geographicalspreadandbenefitstobederi vediii.
6 Outreachb. Competencec. Integrityd. Othersiv. ServiceLevelAgreements(SLAs)andAgentBank ingContractv. Riskmanagement,internalcontrol, Agent Structure Theresponsibilityfotheselectionofagentsl iessolelywiththeFI,subjecttothefollowing allowableagentstructures:i)Super- )Sole- Agent : )Sub-Agents:Thesearenetworksofagentsthat shallbeundethedirectcontrolofasuper-agen tasmaybeprovidedintheagentbankingcontrac t. Information requirements for Agent structure 8 Withineachagentcategory, ,anystructureadoptedshallcontainamongoth ers,thefollowinginformation:i.
7 Name(s)ofagent(s).ii. Location(s) Termsofengagement, Renewal of engagement Monitoring of Agent Banking relationships TheCBNshall,atleastonanannualbasis,monit oFI/agentrelationships; ,theCBNshallconductmonitoringvisitstoany Agent (s).Theapproachfomonitoringsuper-ag entwoulddiffefromotheagenttypesinviewoft heprobablehigherisk, 3. MINIMUM REQUIREMENTS OF Agent Banking CONTRACT i. Everyagentbankingcontractshallcontainref erencetotheFIsfullliabilitywithrespectto customers, Theprincipalisallowedtouseathirdparty( ) , Thesemayinclude:a.
8 Accountopening,depositsandwithdrawals 9 b. Fundtransfeservicesc. Billspaymentsv. Responsibilityfopaymentofexpenses(direct lyoindirectly) Agentsshallnotbepermittedtochargeanyfees directlytocustomers, Measurestomitigaterisksassociatedwithage ntbankingservicestoinclude;limitsoncusto metransactions,cashmanagement,cashsecuri ty, TheFIshallberesponsiblefoallactionsoomis sionsoftheagentnotwithstandinganythingco ntainedinthecontracttothecontrary; TheCBNshallhavefree,full,unfetteredandti melyaccesstotheinternal systems,documents,reports,records, Astatementthatallinformationordatathatth eagentcollectsinrelationtoagentbankingse rvices,whethefromthecustomers,theFIsofro mothersources, Agent Technicaldescriptionofelectronicdevices.
9 10 xxi. Specifythattheagentshallatalltimesensure safe-keepingofallrelevantrecords, data,documentsofilesoalternately,suchrec ords,data, Aprovisionfochangingthetermsofthecontrac tandstipulationsfodefaultand ESTABLISHMENT OF Agent Banking RELATIONSHIP i. AllFIsshallhaveduediligencepoliciesandgu idelinesthatdefineinitialagentengagement ,regulamonitoringandsupervisorychecks, AnyFIthatwishestovarythetermsofitsearlie agreementasapprovedbytheCBN, Agent eligibility i. Theentitymusthavebeeninlegitimatecommerc ialactivityfoatleasttwelve(12)monthsimme diatelyprecedingthedateoftheapplicationt obecomeanagentandthe 11 Anentityshallnotbeeligiblefoappointmenta sanagentifthecarryingoutofagentbankingbu sinessbytheentityshallcontraveneanywritt enlaw, Thefollowingentitiesshallbeeligiblefoapp ointmentasagentsundethisGuidelines.
10 I) ) ) ) ) ) )Anyotheentity, Anyentitywhichisfaith-basedonot-for-prof it,anon-governmentalorganization,aneduca tionalinstitution,bureau-de-changeoanyot heentitywhich, Anyentity,whichissubjecttoanyregulatorya uthorityundeanywrittenlawoisapublicentit y, ASSESSMENT OF AGENTS Suitability assessment of an Agent :i. Anexistingwellestablishedcommercialactiv itywhichhasbeenoperationalfoatleasttwelv e(12) Notbeenclassifiedasanon-performingborrow ebyanyFIinthelast12months 12 precedingthedateofsigningthecontract(suc hinformationhavingbeenobtainedfromlicens edCreditBureaux).
