BNK 601 BANKING LAW 
SEMESTER 1 
 

TUTORIAL 8  

{Based on Clearing and Settlement; and Electronic Banking}

1. One of the legal requirements of Electronic Funds Transfer Code is ensuring “Audit Trail”.
Critically explain the importance of Audit Trail as an internal control mechanism?

2. Under the Electronic Funds Transactions (EFT) framework, explain what is meant by the
statement, "Intermediaries will become knowledge providers rather than transaction
providers.”

3. Under the EFT Framework, where the customer is adamant that they were neither responsible
for, nor authorized the transactions in dispute. There are three aspects that are important that
in turn illustrate that some judges and lawyers have struggled with the concept of electronic
evidence and continue to do so:
(i) The burden of proof (ii) Attitudes to the evidence: that is, the nature of the evidence of the
customer, and the assertions (usually without evidence) made by the bank (iii) The disclosure
or discovery of relevant documents, or more accurately, the difficulty (or failure) to get
appropriate disclosure.

Explain how the burden of proof lies on the bank to make the customer liable towards the
bank for the loss of funds in cases of disputes?

4. The internet has enormous potential for the banks in terms of cost-saving and increased
revenue generation through more effective cross-selling.
Despite the benefits, identify five types of risks which can create implication for the banks?

1
5. Interchange Network, commonly referred to as a National Switch was recently enacted by an
act of Parliament of Fiji.

(i) Under what Act was the Interchange established?

(ii) Explain exactly what is Interchange Payment all about?

(iii) Identify two advantages and disadvantages of Interchange payment from both customers
and bankers point of view.

(iv) State the technical jargon or term which explains the banks ATMs or EFTPOS ability to
“talk to each other or connect under one single network”.

6. Critically explain how FIJICLEAR works does as Fiji’s clearing and settlement system.
Ensure your answer includes elements of FIJICLEAR in your discussion.

References:
Government of Fiji. (2016). Report on Fiji Interchange Network (Payments) Bill 2016,
Parliament of the Republic of Fiji, Parliamentary Paper No. 25: Fiji.
Reserve Bank of Fiji, Press Releases Publication (various): RBF

THE END!!!
