NIGERIA Law and Practice Contributed by: Isa Alade, Seyi Bella, Ayodele Adeyemi-Faboya and Ayomikun Ogunkanmi, Banwo & Ighodalo
11.2 Concerns Raised by Open Banking The ease of accessibility to data occasioned by open banking raises confidentiality and privacy concerns. It is, however, commendable that the Open Banking Framework and Operational Guidelines require participants to comply with all data privacy laws and regulations (including the NDPA consumer protection obligations).
In addition, it is probable that market intermedi - aries and market operators dealing in such fund derivatives and collective investment will need to be registered or approved by the SEC. 10.11Virtual Currencies The e-naira and the cNGN are the only virtual currencies/stablecoins recognised by the CBN. It is also unlikely that virtual currencies will be deemed virtual or digital assets under the Digital Asset Rules. Nevertheless, under the 2020 SEC Statement on Crypto-Assets, virtual currencies will be treated as commodities if traded on a recognised investment exchange and/or where they are issued as an investment. 10.12Non-Fungible Tokens (NFTs) NFTs may be regarded as virtual or digital assets under the Digital Asset Rules. In 2021, the CBN issued the Regulatory Frame - work for Open Banking in Nigeria (the Open Banking Framework) in its effort to enhance competition and innovation in the banking sys - tem. Subsequently, building on the Open Bank - ing Framework, the CBN – in collaboration with industry stakeholders – developed and issued the Operational Guidelines for Open Banking (Operational Guidelines) in 2023. The Opera - tional Guidelines set out detailed provisions on – among other things – the responsibilities and expectations for the participants in the open banking ecosystem, the framework for sharing information, and customer experience stand - ards. 11. Open Banking 11.1 Regulation of Open Banking
12. Fraud 12.1 Elements of Fraud
Under Nigerian law, the elements of fraud – oth - erwise known as “obtaining by false pretence” are that: • there was a pretence that emanated from the accused person; • the pretence was false, and the accused per - son either knew of its falsity or did not believe in the truth of the pretence; • there was an intention to defraud; • the item in question is a thing capable of being stolen; and • the accused person induced the owner/victim to transfer their whole interest in the property. The foregoing also applies to financial services and fintech in Nigeria. Such entities must file returns on incidents and fraud attempts record - ed within the reporting period. 12.2 Areas of Regulatory Focus Regulators in Nigeria are focused on combating all areas of fraud in the financial industry. How - ever, the key focus areas are money laundering and advance fee fraud, as well as other related offences.
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