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CBN releases new framework to address payment system risks in Nigeria
THE Central Bank of Nigeria on Monday released the Nigerian Payments System Risk and Information Security Management Framework, a directive to guide the management of risks associated with the payment system in Nigeria.
The guide approved by the CBN has been in the works since 2007 in line with the proposed vision of achieving a more workable framework in 2020.
This is to identify and establish clear appropriate rules and procedures to address different sources of systematic risks in the country’s payment sector.
Systematic risks, credit risks, liquidity risks, operational risks, compliance, legal and regulatory risks, settlement risks and information security risks according to the framework are some of the risks that are to be addressed in the course of the year.
“The scope of the Framework also includes any payment system based or operated in Nigeria that engages in the settlement of non-Naira transactions operating within Nigeria and those that operate across the Nigerian borders (cross border payment systems); along with their infrastructure providers and the Payment Service Providers (PSPs) that make up these systems. This Framework does not apply to arrangements,” the directive read in part.
In addition, the framework would, “employ the resources necessary to achieve the system’s risk-management objectives and implement effectively its rules and procedures; and build resilience and security adequate to ensure the confidentiality, integrity, and availability of the system.”
The statement also notes that the framework would incorporate governance arrangements lead by the CBN. This is to establish sound governance arrangements with a view to overseeing the risk management framework and set risk management objectives that will help create appropriate rules and procedures, CBN said.