To restore sanity in the nation’s Automated Teller Machine (ATM) payment system, the Central Bank of Nigeria (CBN) has introduced severe penalties for banks and acquirers for non-compliance with its directives and policies on offsite ATM operations.

A circular ref: BPS/DIR/CIR/GEN/02/003 entitled: “Penalty for non compliance on CBN circulars and guidelines on ATM operations in Nigeria”, signed by the Director, Banking and Payments System department, A.S.F Atoloye, which was addressed to banks and acquirers, stated that it had become imperative to restore order in the system, stressing that there had been deliberate attempts by players in the electronic payment market to frustrate the apex bank’s policies.

Apart from a monetary fine of N50, 000 for each of the 14 cases identified and listed in the circular, the affected bank or acquirer stands the chance of being named at the Bankers Committee meeting; suspended from clearing operations or barred from participating in Real Time Gross Settlement (RTGS), until such infraction was corrected.

Some of the cases include: non compliance with Payment Card Industry Data Security Standards (PC IDSS) which attracts a fine of N50,000 per week and will apply until compliance is established; non compliance of ATM terminals with Europay, MasterCard and VISA (EMV) level 1&2, which will attract a fine of N50,000 and temporary suspension of the affected terminal until compliance is established.

Furthermore, N50,000 would be paid as fine per day for late submission of return and data on ATM frauds when required, and failure to provide audit trails and journals for ATM transaction would also attract a fine of N50,000 per week.