In a circular on its website signed by the Director of Banking and Payments System Department, A. Atoloye, the CBN said that its circulars and guidelines on ATM operations in the country had been disregarded with impunity.
According to the bank, it has become necessary to bring order into the market by stipulating some penalties for non-compliance with the CBN directives and policies on ATM operations.
Against the backdrop of recurrent ATM-related fraud cases, the CBN said that a bank that failed to respond to a customer or the apex bank on ATM complaints within 72 hours would attract a fine of N50,000 per day.
The CBN stated that a deployer of an ATM would refund the total amount involved in a fraud if there was no evidence of a resolution of the dispute within 14 days.
The CBN’s circular noted: “For non-compliance with Payment Card Industry Data Security Standards (PCIDSS) 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; failure to provide audit trails and journals for ATM transactions will attract a fine of N50,000 per week.
“Others are, 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 will attract a fine of N50,000 per week; failure to comply with new policy of offsite ATM deployment will 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; failure to disclose ATM surcharge to customers, a refund of the surcharge to the affected customers will be enforced by the CBN; for lack of online monitoring mechanism and back-up power (inverter) for ATM, a fine of N50,000 per day, will apply.
“… 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; an ATM deployer will be made to refund the full amount involved in any fraud perpetrated on its ATM for failure to provide footages on the disputed transactions when required; failure to respond to the customer or to the CBN on ATM complaints with 72 hours will attract a fine of N50,000 per day for each complaint after the 72 hours until the response is received and failure to resolve any ATM dispute with evidence of resolution within 14 days, the deployer will refund the total amount involved in the fraud.”
Other non-monetary sanctions that could be applied to the erring institutions include 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 RTGS operations until the infraction is corrected.”
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