Presentation is loading. Please wait.

Presentation is loading. Please wait.

Payment Systems Vision 2020 1 ENLIGHTENMENT FORUM on the implementation of END-TO-END ELECTRONIC PAYMENT OF SUPPLIERS, TAXES, SALARIES & PENSIONS DECEMBER.

Similar presentations


Presentation on theme: "Payment Systems Vision 2020 1 ENLIGHTENMENT FORUM on the implementation of END-TO-END ELECTRONIC PAYMENT OF SUPPLIERS, TAXES, SALARIES & PENSIONS DECEMBER."— Presentation transcript:

1 Payment Systems Vision ENLIGHTENMENT FORUM on the implementation of END-TO-END ELECTRONIC PAYMENT OF SUPPLIERS, TAXES, SALARIES & PENSIONS DECEMBER 13, 2011

2 Supplier, Taxes, Salaries & Pensions 2 Payment Systems Vision 2020 Forum Objective To further enlighten and carry-along PUBLIC SECTOR stakeholders on the implementation of end-to-end electronic payment of Suppliers, Taxes, Salaries & Pensions

3 Supplier, Taxes, Salaries & Pensions 3 Payment Systems Vision 2020 Presentation Outline 1. Overview of NPSV Suppliers, Taxes, Salaries & Pensions Initiative 3. Complying with e-Payment Directives 4. Stakeholders’ Roles & Responsibilities 5. Responsibilities, Infractions & Sanctions 6. Some Benefits of e-payment 7. Implementation Time Table 8. Next Steps 9. Summary

4 Supplier, Taxes, Salaries & Pensions 4 Payment Systems Vision 2020 SECTION 1: Overview of NPSV

5 Supplier, Taxes, Salaries & Pensions 5 Payment Systems Vision 2020 Overview of National Payments Systems Vision 2020 National Payments Systems Vision 2020  CBN in collaboration with key stakeholders in the Nigerian Payments community developed the National Payments Systems Vision 2020 (NPSV 2020)  NPSV 2020 is a sub-set of the Financial Systems Strategy 2020 (FSS 2020) Global Objective of NPSV 2020 To develop a payment system that is nationally utilized and internationally recognized

6 Supplier, Taxes, Salaries & Pensions 6 Payment Systems Vision 2020 Realising NPSV 2020 For ease of implementation, NPSV 2020 was broken into 11 distinct initiatives  Person to Person  Consumer Bills Payment  Government Suppliers  Taxes  Salary & Pensions  Securities Settlement  Cards  RTGS  Cheques & ACH  Legal  West African Monetary Zone (WAMZ)

7 Supplier, Taxes, Salaries & Pensions 7 Payment Systems Vision 2020 Suppliers, Taxes, Salaries & Pensions Payments Initiative 3 of the initiatives with similar target audiences and execution approaches have been harmonized to become the NPSV 2020 Suppliers, Taxes, Salaries & Pension e-Payment initiative Focus of the Harmonised Initiative: The development and operation of an enduring framework for end-to-end electronic payment of Suppliers, Taxes, Salaries and Pensions

8 Supplier, Taxes, Salaries & Pensions 8 Payment Systems Vision 2020 SECTION 2: Overview of Suppliers, Taxes, Salaries & Pensions e-Payment Initiative

9 Supplier, Taxes, Salaries & Pensions 9 Payment Systems Vision 2020 What is End-to-End electronic Payment? Straight through, electronic processing of a payer’s instructions to effect payment to a beneficiary’s bank account … right from the comfort of your office Suppliers, Taxes, Salaries & Pensions Payments Initiative

10 Supplier, Taxes, Salaries & Pensions 10 Payment Systems Vision 2020 End-to-End electronic Payment of Suppliers, Taxes, Salaries & Pensions Seamless, straight through, electronic processing and payment of ALL FORMS of Suppliers, Taxes, Salaries & Pensions directly into beneficiary bank accounts and electronic remittance of associated schedules with real time feedback and status monitoring of payments by public and private sector organisations in Nigeria … right from the comfort of your office Suppliers, Taxes, Salaries & Pensions Payments Initiative

11 Supplier, Taxes, Salaries & Pensions 11 Payment Systems Vision 2020 Suppliers, Taxes, Salaries & Pensions Payments Initiative e-Payment Initiative Scope: All Public & Private Sector Organisations who need to pay: Suppliers: All organisations Taxes: All Organisations Salaries: Organisations with 50 staff & above Pensions:Organisations with 50 staff/pensioners & above *Contributory Pension & Pensioners

12 Supplier, Taxes, Salaries & Pensions 12 Payment Systems Vision 2020 SECTION 3: Complying with Suppliers, Taxes, Salaries & Pensions e-Payment Directive

13 Supplier, Taxes, Salaries & Pensions 13 Payment Systems Vision 2020 Complying with the e-Payments Directive CBN has worked with various stakeholders over the last couple of years to ensure adoption of e-Payment is as easy as A-B-C

14 Supplier, Taxes, Salaries & Pensions 14 Payment Systems Vision 2020

15 Supplier, Taxes, Salaries & Pensions 15 Payment Systems Vision 2020 Complying with the e-Payments Directive  Presidential Directive - January 01, 2009  Pilot Implementation (e-manual) –Manual Mandates & Schedules allowed  Nationwide Stakeholders Engagement  Full-fledged Implementation –No Manual Cheques, Mandates, or Schedules  Compliance Monitoring

16 Supplier, Taxes, Salaries & Pensions 16 Payment Systems Vision 2020 Complying with the e-Payments Directive  Simple Infrastructure Requirements –Computer/laptop/iPad/etc. –Internet or VPN Connectivity

17 Supplier, Taxes, Salaries & Pensions 17 Payment Systems Vision 2020  Approved by CBN  Available for use at customer premises  Transparent Tariffs and charges  Supports multi-bank operations  Clear issues/dispute resolution processes  Open to CBN for online monitoring & Supervision CBN will not recommend any e-Payment solution. Our concern is compliance of approved solutions with recommended standards. CBN Approved e-Payment solution – What to look out for

18 Supplier, Taxes, Salaries & Pensions 18 Payment Systems Vision Comprehensive Functionality  End-to-end processing from your office  No CD, Flash disk or transmission of data  Approval Work-flow  Replicates your existing payment approval processes  Account Details Validation  Account details are tied to account owner/No Duplicate owners 2.Robust Security  Role-Based security  System Access based only user role  Value-Based Security  Supports Amount Approval limits  Soft, Hard or Biometric token  Combination of: Unique User profile, Transaction Specific ID, Biometric Validation, etc. CBN approved e-Payment solution - What to look out for

19 Supplier, Taxes, Salaries & Pensions 19 Payment Systems Vision Reporting  Audit Trail  Records of ALL activities of each user  Unique Transaction Reference  Each transaction must be uniquely identified  Transactions Status Monitoring  Status available to you at any time without calling your bank  Notifications/Advice  Send payment notice to beneficiary  Historical Reports  Online Reports must be available on transactions for minimum 3 years CBN approved e-Payment solution - What to look out for

20 Supplier, Taxes, Salaries & Pensions 20 Payment Systems Vision 2020 SECTION 4: Stakeholders’ Roles & Responsibilities

21 Supplier, Taxes, Salaries & Pensions 21 Payment Systems Vision 2020 Stakeholders’ Roles & Responsibilities  Public & Private Sector Organisations  Suppliers/Employees/Pensioners/Labour Unions  OAGF/States’ Accountant General  FIRS/States Board of Internal Revenue  Deposit Money Banks  e-Payment Solution Providers  PENCOM/Pension Fund Administrators/Custodians  Professional Bodies/Audit, Tax, Consulting Firms  Corporate Affairs Commission  CBN

22 Supplier, Taxes, Salaries & Pensions 22 Payment Systems Vision 2020 SECTION 5: Responsibilities, Infractions & Sanctions

23 Supplier, Taxes, Salaries & Pensions 23 Payment Systems Vision 2020 Infractions & Sanctions S/ N ActionComplianceInfractionsSanctions 1 Adopt a CBN approved end-to- end solution for e-payment of suppliers/taxes/salaries/pensions Compliance charter submitted to CBN Annual Report & Audit to indicate compliance with e-payment directive Use of manual/auto- manual system to pay taxes/salary/pensio n and suppliers Organization shall be charged N2000 per item of payment done using manual/auto- manual system 2 Bear the cost of e-payments of Suppliers/taxes/salary/pension without passing it to the beneficiary. Where any other arrangement exists it must be mutually agreed between the payer and beneficiary Account/Finance officers to ensure beneficiaries receive actual amount due to them. Charging employees/ /pensioners/supplie rs for the cost of e- payments Refund deducted fees to the beneficiary at twice the prevailing lending rate 3 Verify correctness of Bank Details submitted by Suppliers/Tax Agencies/employees/pensioners/ Relate with banks/PSP to obtain accurate account details of beneficiaries Refusal to verify the correctness of a beneficiary’s bank details from their bankers Organization shall be liable for losses arising from payments made into a wrong account due to non-verification of submitted account details. Public & Private Sector Organisations

24 Supplier, Taxes, Salaries & Pensions 24 Payment Systems Vision 2020 Infractions & Sanctions Beneficiaries (Employees/Pensioners/Suppliers/Tax Agencies) S/NResponsibilityComplianceInfractionsSanctions 1Verify that payments received from bank or employer is not in excess of the actual amount due to the beneficiary Report any case of wrong OR multiple receipt of payments to the relevant payer/bank within 24 hours. Where that is not achievable, the excess should be left untouched till it is retrieved by the payer who has been notified. Refusal to report any payment received in excess of the actual amount due to the beneficiary within 24 hours Beneficiary shall refund excess amount at twice the prevailing lending interest rate to the payer 2Verify payments does not fall short of the actual amount due Report any shortfall in payments received to the appropriate office within 24 hours Refusal to report any shortfall in payments received by beneficiary within 24 hours Beneficiary shall be liable for damages suffered due to failure to report until report is made 3Ensure taxes/salary/pension and supplier payments received are satisfactory Report any complaints to appropriate office in the organization and the CBN Refusal to report any grievances or complaints to appropriate office in the organization and to the regulatory authorities Beneficiary shall be liable for damages suffered due to failure to report until report is made

25 Supplier, Taxes, Salaries & Pensions 25 Payment Systems Vision 2020 Infractions & Sanctions Deposit Money Banks SNResponsibilityComplianceInfractionsSanctions 1Ensure confidentiality of information of e-payment of taxes/salary/pension/suppliers Set up monitoring tools to report any compromise of confidential data in the system. Information system audit to ensure compliance Intentional or unintentional exposure of beneficiary’s e- payment data to third parties DMBs shall be charged a penalty of N10m for breach of confidentiality 2Ensure beneficiaries open bank account or e-purse with the bank (not applicable to corporate customers) Payments of taxes/salary/pension and suppliers to be made into beneficiary’s bank account or e-purse only (payment not allowed into 3 rd party account) Any payments not made directly into beneficiary’s bank account or e-purse Bank shall be charged a penalty of N50, against each payment item for non-compliance 3Make Available/verify bank account details of tax agencies/employees/pensioners and suppliers at the request of the employers and other banks Verification to be made in line with the KYC &KYB requirements Refusal to comply with the KYC &KYB requirements when verifying account details Bank shall be liable for losses arising from payments made into a wrong account due to noncompliance with KYC & KYB requirements 4Ensure e-payment of taxes/salary/pension and suppliers are achieved successfully within stipulated timeline Report any cases of failed transaction, incomplete payment, unsupplied/unreturned payments to the originator and beneficiary within 24 hours Refusal to report cases of failed transaction, incomplete payment, unsupplied/unreturned payments to the originator and beneficiary within 24 hours Bank shall be charged 25% of the total unsuccessful payments not reported.

26 Supplier, Taxes, Salaries & Pensions 26 Payment Systems Vision 2020 Infractions & Sanctions e-Payment Solution Providers SNResponsibilityComplianceInfractionsSanctions 1Ensure confidentiality of taxes/salary/pension/supplier e- payment Set up monitoring tools to report any compromise of confidential data in the system. Information system audit to ensure compliance Intentional or unintentional exposure of beneficiary’s e-payment data to third parties PSP shall be charged a penalty of N10m for breach of confidentiality 2Ensure all payments made through the PSP systems agrees with payer’s mandate Make available/Provide e- payment transaction statements available to paying organization Refusal to grant access or make e-payment transactions statements available PSP shall be charged a penalty of N50, per day for the period report is delayed to the CBN 3Ensure the availability, integrity and security of the system and data processed Set up monitoring tools to report any compromise of secured data in the system. Information system audit to ensure compliance Intentional or unintentional exposure of beneficiary’s secured data to third parties Suspension of e- payment processing by the PSP for 3 months and until data availability integrity & security are established with evidence of such 4Ensure that all e-payments of taxes/salary/pension and suppliers are achieved successfully within stipulated time Report any cases of failed transaction, incomplete payment, unsupplied/unreturned payments to the originator and beneficiary within 24 hours Refusal to report cases of failed transaction, incomplete payment, unsupplied/unreturned payments to the originator and beneficiary within 24 hours PSP shall be charged 25% of the total unsuccessful payments not reported.

27 Supplier, Taxes, Salaries & Pensions 27 Payment Systems Vision 2020 Infractions & Sanctions Other stakeholders S/NStakeholderResponsibility/Action 1CBN  Approve/ license qualified e-payment services providers  Create awareness about e-payment and the e-payment initiatives  Carry out oversight function over the DMBs and PSPs on compliance with the guideline on e-payment of taxes/salary/pension and supplier 2CAC  Communicate to organizations at the registration point that they are expected to disclose compliance with e-payment of taxes/salaries/pension/tender/supplier where such organization has 50 and above employees 3Professional Accounting /Audit/Tax firms and Associations  Communicate to members the new requirement  Amend guidelines/reporting/disclosure of standards to recognize e- payment  Ensure their customers provide statement of compliance with e- payment directives in their annual audited statements 4OAGF/States Accountant General  Ensure all Government payments are made through e-payment  Issue Guidelines & Circular and ensure they are in compliance with the CBN guidelines  Partner with the CBN and ensure that MDAs fully complied with the guidelines 5PENCOM  Ensure all remittances to PFAS/PFCs with associated electronic schedulers and payments to pensioners are done through e-payment 6FIRS/SBIR  Ensure payment/collection of all taxes are done through approved e- payment solutions/platforms

28 Supplier, Taxes, Salaries & Pensions 28 Payment Systems Vision 2020 SECTION 6: Benefits of e-Payment of Suppliers, Taxes, Salaries & Pensions

29 Supplier, Taxes, Salaries & Pensions 29 Payment Systems Vision 2020 Some Benefits of e-Payment JAMES DANJUMA 12/12/2011 Robbers kill one, cart millions away from micro finance bank Dare devil robbers last weekend attacked a micro finance bank in Batsari Council Area of Katsina State, killing one person and carting away millions of naira. The stolen money, which was deposited earlier in the day, was for the payment of salaries of state workers in the area.

30 Supplier, Taxes, Salaries & Pensions 30 Payment Systems Vision 2020 Some Benefits of e-Payment  Safety of funds & lives –No undue attention, bullion vans, security escorts, etc.  Improved operational efficiency –Reduction in manual processes and associated errors  Make Payments at anytime from anywhere –weekday/weekend/public holiday/day/night  Monitoring of Transactions every step of the way –No need to call account officer or wait endlessly  Comprehensive Payment Records Database –Tax Payers, Suppliers, Employees, Pensioners, etc.

31 Supplier, Taxes, Salaries & Pensions 31 Payment Systems Vision 2020 Some Benefits of e-Payment  Reduced cost of consummating transactions –Saves time, effort, stationery, stress, etc.  Improved transparency & accountability –Historical records of every single transaction  Easily increase IGR –Effortless collection of different taxes & revenue  You are in good company –Many public & private sector organisations have already embraced e-payment  Promoted & Backed by Government –It’s nice to be in Government’s good books!

32 Supplier, Taxes, Salaries & Pensions 32 Payment Systems Vision 2020 SECTION 7: Implementation Time Table

33 Supplier, Taxes, Salaries & Pensions 33 Payment Systems Vision 2020 Implementation Time Table Issuance of Guidelines by CBN  August 2010 Stakeholders Engagement & Awareness Campaign  January to December 2011 Implementation Commencement  January 2, 2012

34 Supplier, Taxes, Salaries & Pensions 34 Payment Systems Vision 2020 SECTION 8: Next Steps

35 Supplier, Taxes, Salaries & Pensions 35 Payment Systems Vision 2020 Next Steps  Contact a CBN approved provider OR your bank for an e-Payment solution TODAY  Provide basic e-Payment infrastructure  Activate selected e-Payment solution  Train relevant staff on use of new system  Commence use of your e-Payment system  STOP manual cheques/mandates/schedules for payment of suppliers, taxes, salary & pension  Endorse compliance charter & send copy to CBN

36 Supplier, Taxes, Salaries & Pensions 36 Payment Systems Vision 2020

37 Supplier, Taxes, Salaries & Pensions 37 Payment Systems Vision 2020 SECTION 9: Summary

38 Supplier, Taxes, Salaries & Pensions 38 Payment Systems Vision 2020 Summary End-To-End Electronic Payment of Suppliers, Taxes, Salaries & Pension commences Nationwide on January 2, 2012 …BE PREPARED

39 Supplier, Taxes, Salaries & Pensions 39 Payment Systems Vision 2020 For more Information Primary Contact: Sam Okojere Phone: Website:

40 Supplier, Taxes, Salaries & Pensions 40 Payment Systems Vision 2020

41 Supplier, Taxes, Salaries & Pensions 41 Payment Systems Vision 2020


Download ppt "Payment Systems Vision 2020 1 ENLIGHTENMENT FORUM on the implementation of END-TO-END ELECTRONIC PAYMENT OF SUPPLIERS, TAXES, SALARIES & PENSIONS DECEMBER."

Similar presentations


Ads by Google