Electronic Transfer of Funds Crime Bill by loy.okezie

VIEWS: 9 PAGES: 11

									                                                                              C 1971
[SB.35]        THE ELECTRONIC TRANSFER OF FUNDS CRIME BILL, 2011

                                       ARRANGEMENT   OF SECTIONS



Section:
     1.    Short Title

    2.     Interpretation

    3.     False statement
    4.     Theft by taking or retaining possession of card

     5.    Card theft

     6.    Dealing in card of another
     7.    Purchase or sale of card of another

     8.    Obtaining control of card as security for debt
     9.    Card forgery

   10.     Signing a card of another
    II.    Fraudulent use of card
    12.    Fraud by person authorised to provide goods, services, etc.
    13.    Receipt of money, etc., obtained by fraudulent use of card
    14.    Obtaining goods, etc., by use of false, expired, or revoked card
    15.    Trafficking in counterfeit card

   16.     Possession of card_making equipment
    17.    Alteration of card invoice

    18.    Liability for misuse of card

   19.     Card lists prohibited
   20.     Use of fraudulent device, attachments, e-mails and websites
   21.     Regulations
                                                                                                                         C 1973


                                             A BILL
                                                  FOR
     AN ACT TO REGULATE THE TRANSFER OF MONEY BY AN ELECTRONIC TERMINAL BY
      USE OF A CARD FOR THE PURPOSEOF INSTHUCTING OR AUTHORISING A FINANCIAL
      INSTITUTION TO DEBIT OR CREDIT A CARDHOLDER'S ACCOUNT WilEN ANYTHING
                   OF VALUE Is PURCHASED AND FOR OTHER RELATED PURPOSES

                           Sponsored by SENATOR ADEGBENGA SEFlU KAKA
                                  (Ogun East Senatorial District)
                                                Co-Sponsors:
              SENATOR DOMINGO A. OBENDE                  SENATOR AKIN ODUNSI
              SENATOR GBENGA OBADARA                     SENATOR AHMED SANI STORES
              SENATOR ISA GALAUDU                        SENATOR NURUDEEN ABATEMI-USMAN
              SENATOR SAHABI Y A' U ALHAJI               SENATOR MAGNUS ABE
              SENATOR N. ALHASSAN                        SENATOR MOl-I'D SANI SALEH
              SENATORR. A. BOROFFICE                     SENATOR A YOGU EZE
              SENATOR Ayo AKINYELURE                     SENATOR SONNI OGBUOlI
              SENATOR BOLUWAJI KUNLERE                   SENATOR GBENGA ASHAFA
              SENATOR ANTHONY ADENIYI                    SENATOR OLUSOLA ADEYEYE
              SENATOR OLUBUNMI ADEKUMBI                  SENATOR OLUFEMI LANLEHIN
             SENATOR AYOADE ADESEUN                      SENATOR DANGANA E. OCHEJA
             SENATOR SHAABA LAFIAGI                      SENATOR ANDY UBA
             SENATOR MARAFA KABIR


                                                                      [                                         J   Commence-
                                                                                                                    ment.

             BE IT ENACTED by the National              Assembly        of the Federal       Republic       of
     Nigeria-

             1. This   Bill may be cited as the Electronic         Transfer     of Funds Crime          Bill,       Citation.

2    2011.

3            2.   In this unless the context     otherwise   requires       -                                       Interpretation.
4            "authorised     manufacturer"       means    a financial      institution     which     or any

5       other person       who is authorised     under any written         law to produce        a card;

6            "bank card" means any instrument,           token, device, or card, whether             known

7       as a bank service       card, banking     card, cheque guarantee           card, or debit card

8       or by any other similar       name, issued with or without              a fee by an issuer for

9       the use of the cardholder        in obtaining     goods,    services,      or anything       else of

10      value or for use in an automated           banking   device       to obtain      money     or any of
C i974   2011 No.                      Electronic Transfer of Funds Crime

                    the services offered through the device;
               2       "card" means a bank card, credit card, or payment card;
               3       "cardholder" means the person named on the face of a bank card, credit
               4    card or a payment card to whom or for whose benefit such a card is issued by
               5    an issuer;
               6       "card-making     equipment"    means any equipment,        machine,    plate,
               7    mechanism, impression, or any other device designed, used, or capable of
               8    being used to produce a card, a counterfeit card, or any aspect or component
               9    of a card;
              10       "counterfeit card" means a bank card, credit card or a payment card
              II    which is fictitious, altered, or forged and includes any facsimile or false
              12    representation ,depiction, or component of such a card, or any such card
              13    which is stolen, obtained as part of a scheme to defraud, or otherwise unlawfully
              14    obtained, and which mayor may not be embossed with account information
              15    or an issuer's information;
               16      "credit" includes a cash loan, or any other financial accommodation;
              17       "credit card" means any instrument, token, device, or card, whether
               18   known as a charge card or by any other similar name, issued with or without
               19   a fee by an issuer for the use of the cardholder in obtaining goods, services,
              20    or anything else of value on credit from a creditor or for use in an automated
              21    banking device to obtain money or any of the services offered through the
              22    device;
              23        "creditor" means a person or company that agrees or is authorised by an
              24    issuer to supply goods, services, or anything else of value and to accept
              25    payment by use of a bank card, credit card, or payment card for the supply
              26    of such goods, services or anything else of value to the cardholder;
              27        "electronic transfer of fund" means any transfer of funds which is initiated
              28    by a person by way of instruction, authorisation or order to a bank to debit or
              29    credit an account maintained with that bank through electronic means and
              30    includes point of sales transfers, automated tellers machine transactions,
              31    direct deposits or withdrawal of funds, transfer initiated by telephone, internet
                             Electronic Transfer of Funds Crime                        2011 No. C 1975

           and card payment;
 2            "expired card" means a card which is no longer valid because the term
 3         shown on it has expired;
 4            "financial institution" means a company as defined under the Banks and
 5         other Financial Institutions Act 2007;
 6            "issuer" includes a financial institution which or any other entity who is
 7         authorised by the Central Bank to issue a payment card;
 8            "receives" or "receiving" means acquiring possession, title or control
 9         or accepting a card as security for credit;
10            "revoked card" means a card which is no longer valid because permission
II         to use it has been suspended or terminated by the issuer, whether on its own
12         or on the request of the cardholder;
13            "payment card" means any instrument, token, device, or card, or whether
14         known by any other similar name, and encoded with a stated money value
15         and issued with or without a fee by an issuer for use of the cardholder in
16         obtaining goods, services, or anything else of value, except money;
17            "traffic" means to sell, transfer, distribute, dispense, or otherwise dispose
18         of property or to buy, receive, possess, obtain control of, or use property
19         with the intent to sell, transfer, distribute, dispense, or otherwise dispose of
20         such property.
21            3. A person who makes or causes to be made, either directly or indirectly,      False
                                                                                              statement and
22   any false statement as to a material fact in writing, knowing it to be false and         Identity theft.

23   with intent that it be relied on respecting his identity or that of any other person
24   or his fmancial condition or that of any other person for the purpose of procuring
25   the issuance of a card to himself or another person commits an offence and is
26   liable on summary conviction to a fine of fifty thousand naira.
27            4.-(1) A person who takes a card from the possession, custody or control        Theft by
                                                                                              taking or
28   of-                                                                                      retaining
                                                                                              possession of
29            (a)   the cardholder; or                                                        card.

30            (b)   a person holding or having possession of the card with the consent of
31         the cardholder,
C 1976        2011 No.                         Electronic Transfer of Funds Clime

                         without the cardl~older's or the person's consent or who, with knowledge that it

                    2    has been so taken, receives the card with intent to use, sell, or to transfer it to

                    3    a person other than the issuer or the cardholder commits an offence and is

                    4    liable on -
                    5          (i) summary    conviction   to a fine of fifty thousand      Naira    and to

                    6       imprisonment for two years; or

                    7          (ii) conviction on indictment to a fine of fifty thousand N~ira and to

                    8       imprisonment for five years.

                    9          (2) For the purpose of this section, taking a card without consent includes

                   10    obtaining it by any conduct defined or known as larceny or fraud, or by obtaining

                   11    property by false pretence, or by extortion.

Card theft.        12          5. A person who receives a card that he knows or ought to reasonably
                   13    know to have been lost, mislaid, or delivered under a mistake as to the identity

                   14    or address of the cardholder and who retains possession with intent to use, sell,

                    15   or to traffic it to a person other than the issuer or the cardholder commits an

                    16   offence and is liable on summary conviction to a fine of fifty thousand naira and

                    17   shall further be liable to payment in monetary terms the value of loss sustained

                    18   by the cardholder.

Dealing in          19         6. A person, other than the issuer, who receives and retains possession of
card of
another.           20    two or more cards issued in the name or names of different cardholders, which

                   21    cards he has knowledge were taken or retained under circumstances            which

                   22    constitute a card theft commits an offence and is liable on summary conviction

                   23    to a fine offifty thousand naira and shall further be liable to payment in monetary

                   2A    terms the value of loss sustained by the card holder or forfeiture of the assets or

                   25    goods acquired with the funds from the account of the cardholder.

Purchase or        26          7. A person other than an issuer or their authorise agent who sells a card
sale of card
of another.        27    or a person who buys a card from a person other than an issuer or their autborised

                   28    agent commits an offence and is liable on summary conviction to a fine of fifty

                   29    thousand naira and shall further be liable to payment in monetary terms the

                   30    value of ross sustained by the card holder or forfeiture of the assets or goods

                   .31   acquired with the funds from the account of the cardholder.
                          Electronic Transfer of Funds Crime                          2011 No. C 1977

              8. A person who, with intent to defraud the issuer, a creditor, or any         Obtaining
                                                                                             control of
2    other person, obtains control over card as security for   a debt commits an offence     card as
                                                                                             security for
 3   and is liable on summary conviction to a fine of fifty thousand naira and shall         debt.

4    further be liable to payment in monetary terms the value of loss sustained by

 5   the card holder or forfeiture of the assets or goods acquired with the funds from
 6   the account of the cardholder.

 7            9.-(1) A person who, with intent to defraud an issuer, a creditor, or any      Card forgery.

 8   other person, falsely makes, embosses, or alters in any manner a card or alters

 9   such a card or who, with intent to defraud, has a counterfeit card or any invoice,

JO   voucher, sales draft, or other representation or manifestation of a counterfeit

II   card in his possession, custody, or control commits an offence and is liable on

12
13            (a) summary conviction to a fine of one hundred thousand naira and to

14      imprisonment for two years; or
15            (b) conviction on indictment to a fine of one hundred thousand naira and

16      to imprisonment for five years.

l7            (2) A person, other than an authorised manufacturer or issuer, who possesses

18   a counterfeit card is presumed to have the intent to defraud as required under

19   subsection (I).

20            (3) A person falsely makes a card when he makes or draws in whole or in

21   part a device or instrument which purports to be the card of a named issuer but

22   which is not such a card because the issuer did not authorise the making or

23   drawing, or when he alters a card which was validly issued commits an offence

24   and is liable on indictment to a fine of one hundred thousand naira and to

25   imprisonment for five years.

26            (4) A person falsely embosses a card when, without the authorisation of

27   the named issuer, he completes a card by adding any of the matter, including

28   the signature of the cardholder, which an issuer requires to appear on the card

29   before it can be used by a cardholder commits an offence and is liable on

30   indictment to a fine of one hundred thousand naira and to imprisonment for five

31   years.
C 1978 2011 No.                             Electronic Transfer of Funds Crime

Signing a card
                            10. A person, other than the cardholder or a person authorised by him,
of another.

                 2    who, with intent to defraud the issuer or a creditor, signs a card commits an

                  3   offence and is liable on summary conviction to a fine of fifty thousand naira and

                 4    to imprisonment for three years.
Fraudulent use    5         Ll , A person who, with intent to defraud an issuer or a creditor, uses, for
of card.
                  6   the purpose of obtaining money, goods, services, or anything else of value, a

                  7   card obtained or retained fraudulently or a card which he knows is forged, or

                  8   who obtains money, goods, services, or anything else of value by representing,

                  9   without the consent or authorisation of the cardholder, that he is the holder of a

                 10   specified card, or by representing tilat he is the holder of a card and such card

                 II   has not in fact been validly issued, commits an offence and is liable on -

                 12         (a) summary conviction to a tine of one hundred thousand naira and to

                 13      imprisonment for two years; or

                 14         (b) conviction on indictment to a tine of one hundred       thousand naira and

                 15      to imprisonment for five years.
Fraud by         16         12.-(1)   Acreditor who, with intent to defraud the issuer or tile cardholder,
person
authorised to    17   furnishes goods, services, or anything else of value upon presentation of a card
provide goods,
services. etc.   18   which he knows is obtained or retained fraudulently or illegally or a card which

                 19   he knows is forged, expired, or revoked commits an offence and is liable on-

                 20         (a) summary     conviction    to a fine of thirty thousand          naira and to

                 21      imprisonment for two years; or

                 22         (b) conviction on indictment to a fine of one hundred thousand naira and

                 23      to imprisonment for five years.

                 24         (2) A creditor who, with intent to defraud tile issuer, or the cardholder,
                 25   fails to furnish goods, services, or anything else of value which he represents in
                 26   writing to the issuer or the cardholder that he has furnished commits an offence

                 27   and is liable on summary conviction to a fine of one hundred thousand naira and

                 28   to imprisonment for two years.
                 29         (3) A person who is authorised by a creditor to furnish goods, services, or

                 30   anything else of value upon presentation of a card or a card account number by
                 31   a cardholder,   or any agent or employee of such person, who, with intent to




                                                                   ,I   l~ 'or •.   I   "II   f'~I'   i;~~{I'JH
                       Electronic Transfer of Funds Crime                         2011 No. C 1979

     defraud the issuer, or the cardholder, presents to the issuer or the cardholder,

 2   for payment, a card transaction record of sale, which sale was not made by

 3   such person or his agent or employee, commits an offence and is liable on

 4   summary conviction to a fine of thirty thousand naira and to imprisonment for

 5   two years.

 6         (4) A person who, without the creditor's authorisation, employs, solicits

 7   or otherwise causes a person who is authorised by the creditor to furnish goods,

 8   services or anything else of value upon presentation of a card account number

 9   by a cardholder, or employs, solicits or otherwise causes an agent or employee

10   of such authorised person, to remit to the creditor a card transaction record of

11   a sale that was not made by such authorised person or his agent or employee

12   commits an offence and is liable on summary conviction to a fine of one hundred

13   thousand naira and to imprisonment for two years.
14         13. A person who receives money, goods, services or anything else of         Receipt of
                                                                                        money, etc.,
15   value obtained in breach of section 12, knowing or believing that it was so        obtained by
                                                                                        fraudulent use
16   obtained commits an offence and is liable on summary conviction to a fine of       of card.

17   one hundred thousand naira and to imprisonment for two years

18         14.-(1) A person who, with knowledge, unlawfully obtains credit or           Obtaining
                                                                                        goods. etc.,
19   purchases any goods, services or anything else of value by the use of any false,   by use of
                                                                                        false,
20   fictitious, counterfeit or expired card, card number or other credit device, or    expired I or
                                                                                        revoked.
21   by the use of any card, card number, or other credit device of another person

22   without the authority of that other person to whom such card, number or device

23   was issued, or by the use of any card, card number, or other credit device in

24   any case where such card, number or device has been revoked and notice of the
25   revocation has been given to the person to whom it was issued commits an

26   offence and is liable on -

27         (a) summary conviction to a fine of one hundred thousand Naira and to

28      imprisonment for two years; or

29         (b) conviction on indictment to a fine of One Hundred fifty thousand

30      Naira and to imprisonment for five years.
31         (2) For the purpose of this section, knowledge of revocation shall be
C 1980 2011 No.                               Electronic Transfer of Funds Crime

                        presumed to have been received by a cardholder seven clear days after such

                   2
                        notice has been sent to him by post at his last known address.
Trafficking   in              15.-(1) A person who is found in possession of three or more counterfeit
                   3
counterfeit
card.                   cards, invoices, vouchers, sales drafts, or other representations or manifestations
                   4
                    5
                        of counterfeit cards, or card account numbers of another person is deemed to
                        have the same for the purpose of trafficking, unless the contrary is proved, the
                    6
                        burden of proof being on the accused.
                    7
                              (2) A person who commits the offence of trafficking under subsection (I)
                    8
                        is liable on summary conviction to a fine of one hundred and fifty thousand
                    9
                   10
                        naira and to imprisonment for five years.

Possession of                 16. A person who receives, possesses, transfers, buys, sells, controls, or
                   11
card-making
equipment.         12   has custody of any card-making equipment with intent that such equipment be

                   13   used in the manufacture of counterfeit cards commits an offence and is liable

                   14
                        on summary conviction to a fine of two hundred thousand naira and to

                   IS   imprisonment for five years.
Alteration of                 17. A person who, with intent to defraud another person, falsely alters
card invoice.      16
                   17   any invoice for money, goods, services, or anything else of value obtained by
                        use of a card after that invoice has been signed by the cardholder or a person
                   18
                   19   authorised by him commits an offence and is liable on summary conviction loa

                   20   fine of one hundred thousand Naira and to imprisonment for two years.
Liability for      21         18.-(1)   A cardholder shall not unless he acts in collusion with another
misuse of
card.              22   person be liable to the issuer for any loss arising from use of the card by any

                   23   person not acting, or to be treated as acting, as the cardholder's agent.
                                        ,

                   24         (2) Subsection (l) does not prevent the cardholder from being made liable

                   25   to the extent of One hundred thousand Naira for loss to the issuer arising from

                   26   use of the card by another person during a period beginning when the card

                   27   ceases to be in the possession of any authorised person and ending when the

                   28   card is once more in the possession of an authorised person.

                   79         (3) Subsection (I) does not prevent the cardholder from being made liable

                   30   to any extent for loss to the issuer from use of the card by a person who
                        acquired possession of it with the cardholder's consent.
                           Electronic Transfer of Funds Crime                                  2011 No. C 1981

              (4) Subsections   (2) and (3) shall not apply to any use of the card after the

 2   issuer has been given notice within two days of discovering           that the card is lost,

 3   stolen, or is for any other reason liable to misuse.

 4            (5) Subsections   (2) and (3) shall not apply unless the issuer provides the

 5   cardholder     with particulars     of the name, address and telephone          number of a

 6   person stated to be the person to whom notice is to be given under subsection

 7   (4).

 8            (6) Notice under subsection (4) takes effect when received,             but where it

 9   is given orally, it shan be confirmed         in writing within fourteen clear days.

10            (7) Any sum paid by the cardholder for the issue of the card, to the extent,

11   if any ,that it has not been previously        offset by use made of the card, shall be

12   treated as paid towards satisfaction of any liability under subsection             (2) or (3).

13            (8) The cardholder,      issuer or any person authorised    by the cardholder       to

14   use the card shall be authorised persons for the purpose of subsection (2).

15            19.-(1) Subject to subsection (2), a financial        institution    shall not make         Card lists

     available,    lend, donate, or sell any list or portion of a list of any cardholded ,
                                                                                                      •   prohibited.
16
17   and their addresses and account numbers to any person without the prior written

18   permission     of the cardholder.                                                            1

19            (2) A financial institution may make available to a Central Bank licensed

20   credit bureau,     which seeks to determine         only the cardholder's      credit rating,

21   any list or portion of a list of any cardholders         and their addresses     without the

22   permission     of the cardholder but must, within seven working days, give written

23   notice of the disclosure       to the cardholder.

24            (3) A fmancial institution which breaches subsection (I) commits an offence

25   and is liable on summary conviction to a fine of one hundred and fifty thousand

26   naira.

2J            20.-(1) Any person who with intent to defraud                uses any device or             Use of
                                                                                                          fraudulent
28   attachment,     e-mails or fraudulent     website    to obtain information      or details of        device or
                                                                                                          attachment    e-
29   a card holder commits an offence and upon conviction is liable to imprisonment                       mails and
                                                                                                          websites.
30   for a period of 3 years or to a fine of two hundred thousand                 Naira or both

31            (2) Any person who fraudulently re-direct funds transfer instructions during
            C 1982 20ll No.                           Electronic Transfer of Funds Crime

                               transmissions over any authorised communication path        0 device   and re -directs

                           2   funds transferred electronically with an authorised account commits an offence

                           3   and upon conviction is liable to imprisornnent for a period of 3 years or to a fine
                           4   of two hundred thousand naira        and sha1l further be liable to payment          ill
                                                                                                                    I


                           5   monetary terms the value of loss sustained by the card holder or forfeiture of

                           6                                                     the
                               tile assets or goods acquired with the funds fr0111 account of the cardholder
            Regulations.   7         21. The Minister may make regulations as may be necessary or expedient

                           8   for giving effects to the provisions of this Act.

                                                           EXPLANATORY    MEMORANDUM


                                     This Bill seek to regulate the transfer of money by an electronic terminal
                               by use of a card for the purpose of instructing or authorising a.financial institution
                               to debit or credit a cardholder's account when anything of value is purchased
                               amongst others. '
                                     It also seeks to give confidence to users of credit cards, to achieve
                               reasonable attainment of cashless society.




,I'   i ~

								
To top