🏦 Online transfers of ₦1 million by individuals require an indemnity

You can't transfer more than ₦1m without an indemnity signed with your bank. Other news like Zipline in Kaduna. And Swvl's crisis-induced pause in Kenya are contained in this letter.

🏦 Online transfers of ₦1 million by individuals require an indemnity
Some of the CBN's functions | Graphic by benjamindada.com
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Last Sunday (June 5, 2022), during the Pentecost mass in St. Francis Xavier Catholic Church, Owo, Ondo State, Nigeria, terrorists attacked, injured and killed several parishioners. This despicable act has thrown the already embattled Nation into a time of sadness. We, at benjamindada.com, express our heartfelt condolence to these families and also hope that justice is served.

For BD Insider, letter 117, we will cover:

  • CBN's directive to demand indemnity for online transfers above ₦1 million
  • Zipline's Nigerian debut in Kaduna
  • Swvl partly halts operations in Kenya

CBN reminds banks (and PSPs) to adhere to modalities of high-value transactions

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Indemnity means security or protection against financial liability. It is a contract that holds a business or company harmless for any burden, loss, or damage. In this case, the indemnity implies that the bank is not to be held responsible for any liability that may arise from online funds transfer.

What's the news? 10 days ago (May 26, 2022), the CBN reminded NIBSS and other electronic payment facilitators to do the following with respect to high-value transactions:

  • implement indemnity acceptance via paper or electronic means, based on the customer's preference
    • For e-indemnity sign-off, stricter controls must be put in place like biometric authentication
  • adhere to multi-factor authentication (MFA) per transaction
  • inform and educate customers on the use of indemnity to increase transaction limits, where applicable

What we call high-value transactions is what the CBN calls "Highly Secured Online Funds Transfer". I guess the name explains itself—it's 'highly secured' because the value of the transaction is 'high'.

Who is affected? The following parties are affected: