UBA Plc, one of Nigeria’s tier one banks recently sent an email to its customers informing them of restriction in the use of its debit and prepaid cards on certain services. The services include purchase of jewellery, pornography and escort services. Other products to be restricted include betting of any kind.
Why the bank took the action
According to an email from the bank, , the measure was taken in order to protect itself and customers from fraud, litigation and reputational damage. Many of these sites have poor security and as such card details could be stolen and used by criminal elements. This could then elad to lawsuits against the bank. UBA may also be taking this position to prevent any possible use of its cards or services for money laundering.
Who loses ?
Companies and online merchants in the products and services restricted by the bank, could witness a decline in income as other banks will follow suite.
UBA Plc yesterday released its HY 2017 results with Profit After Tax i(PAT) increasing from N27.1 billion in 2016 to N42.6 billion in 2017. The bank also declared an interim dividend of 20 kobo per share. UBA shares are currently trading at N9.74 as at 11.42am in today’s session on the Nigerian Stock Exchange (NSE). Year to date, UBA shares are up 115.78%
“to prevent any possible use of its cards or services for money laundering” How does this action achieve this? i don’t understand.