In addition of the Guidelines for the Licensing and Regulation of Payment Service Banks (PSBs) by the Central Bank of Nigeria (CBN) in 2018 and revised in 2020, the CBN has yet issued a Supervisory Framework for Payment Service Banks (the Framework) which now includes new corporate governance and Anti-Money Laundering (AML)/Countering the Financing of Terrorism (CFT) requirements regulating the operations of PSBs in Nigeria.
Recognising the likelihood of the PSBs becoming integral to Nigeria’s financial system, the CBN has issued the Framework to further strengthen the financial system by providing sets of regulations that will ensure transparency in the operations of the PSBs as well as ensure adequate consumer protection. Effectively, the CBN is holding the PSBs to higher standards, somewhat similar to the standards governing the operations of deposit money banks under extant CBN regulations.
Therefore, this Newsletter highlights in summary, the key provisions of the Framework, especially in relation to the corporate governance and AML/CFT requirements now imposed on PSBs in Nigeria.
