CBN Sets Regulatory Framework for Licensing Super Agents

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Thursday, April 02, 2015 9.17AM/CBN

1.0 Application and Approval Requirements

Any institution that wishes to be licensed as a Super-Agent shall submit an application for approval to the CBN. The application shall be submitted to the Director, Banking & Payments System Department, Central Bank of Nigeria, Abuja.

All applicants shall supply information to the CBN as may be required from time to time.

2.0 Minimum Requirements for A Super-Agent

A Super-Agent shall be licensed by the CBN under the following requirements:

a. Must be a company with an existing business, operational for at least 12 months

b. Must be registered with the Corporate Affairs Commission (CAC)

c. Must have a minimum Shareholders’ Fund, unimpaired by losses of N50million

d. Must obtain a reference letter from a Financial Institution (FI) as part of its documentation for licence

e. Must have a minimum of 50 agents

3.0 Documentary Requirements

All applications for Super-Agent licence shall be accompanied with the following:

i. Board Approval

ii. Certificate of Incorporation

iii. The company’s profile and functional contact e-mails, telephone numbers, office and postal addresses

iv. Memorandum & Articles of Association

v. Shareholding structure of the Company

vi. Forms C02 (Return on Allotment of shares) and C07 (Particulars of Directors)

vii. CVs of Board and Management of the Company

viii. Organogram of the Company

ix. Feasibility Report

x. Information Technology Policy of the Company

xi. Enterprise Risk Management Framework

xii. Contingency and Disaster Recovery Plan (Business Continuity Programme)

xiii. A document that shall outline the strategy of the shared agent network including current and potential engagements, geographical spread and benefits to be derived

xiv. Qualifying criteria for engaging agents e.g.

a. Outreach

b. Competence

c. Integrity

d. Others

xv. Draft Service Level Agreements (SLAs) with sub-agents and FI Agent Banking Contract

xvi. Risk management, internal control, operational procedures and any other policy and procedures relevant to the management of an agent banking arrangement.

xvii. Procedures for KYC and AML/CFT compliance

xviii. Fraud detection plan and standard of care

xix. Consumer protection policy and procedure

4.0 Responsibilities of Super-Agents

The Super-Agents shall:

i. Be responsible for monitoring and supervising the activities of the agents.

ii. Have information on the volume and value of transactions carried out for each type of service by each agent. (which should be made available to the Principal)

iii. Monitor effective compliance with set limits and establish other prudential measures in each case.

iv. Take all other measures, including onsite visits, to ensure that agents operate strictly within the requirements of the law, guidelines and the contract.

v. Notwithstanding the responsibility by the Super-Agent (SA) to monitor and supervise their agents, the CBN may at any time request for any information or carry out inspection as it deems necessary.

5.0 Renewal of Engagement

Operating license of Super Agents shall be renewed every two (2) years, subject to satisfactory performance.

6.0 Platform and Interoperability

This section describes the various platforms, which shall be used for the provision of mobile money services:

a. Platform

i. NIBSS shall provide the switching infrastructure to enable inter-scheme Cash-In-Cash-Out (CICO) at all agent locations

ii. The Super-agents’ platform shall be for the management and monitoring of the activities of their agents only, and shall not hold electronic money value, whereas, the FI shall provide and operate the mobile money platform and hold electronic money value

iii. All MMO platforms shall at all times be upgraded to the latest technology (inclusive of mandatory integration to NIBSS), tested and active to ensure interoperability between MMOs

iv. CICO services for Inter-scheme payments shall be a basic function at all agent locations, other add-on services may be provided. All MMO platforms shall facilitate inter-scheme CICO services

b. Interoperability

i. Super-Agent’s platform shall be enabled to communicate with all its agents and shall have visibility of its agents' transactions through integration with NIBSS.



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