CBN unveils guidelines for payments system firms | The Guardian Nigeria News - Nigeria and World News

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CBN unveils guidelines for payments system firms | The Guardian Nigeria News - Nigeria and World News
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The Central Bank of Nigeria (CBN) has unveiled guidelines for licensing and regulation of payments system holding companies (PSHC), stressing that companies must exist...

The Central Bank of Nigeria has unveiled guidelines for licensing and regulation of payments system holding companies , stressing that companies must exist as non-operating entities in the ecosystem.

In an accompanying circular issued yesterday and signed by the Director, Payments System Management Department, Musa Jimoh, the CBN insisted that PSHC must maintain a minimum of two subsidiaries with a focus on switching and mobile money services.The guideline covered broad areas such as licensing process/requirements, ownership, corporate governance, permissible/non-permissible activities and prudential regulation.

“The PSHC shall be non-operating, existing solely to carry out investment in approved subsidiaries without engaging in the day-to-day management and operations of subsidiaries,” the regulator noted in the new document. Concerning ownership, it stated: “Prior approval of the CBN shall be obtained for any shareholding of five per cent and above, or any change in ownership that results in a change in control of the PSHC.

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