CBN Directs Banks to Enhance Security for Foreign Card Transactions

The Central Bank of Nigeria (CBN) has issued a fresh directive to banks and financial institutions to implement multi-factor authentication for transactions involving foreign payment cards. The directive, aimed at strengthening security and improving user experience, sets limits on online transactions exceeding certain amounts in Naira.

Banks and non-bank acquirers are required to ensure uninterrupted access to local currency withdrawals and payment transfers for users of foreign-issued cards. The CBN mandates compliance with global card association standards and enhanced monitoring systems to detect unusual usage patterns.

The directive also emphasizes the need for sufficient liquidity to meet settlement obligations and curb fraud.