LAST WARNING? If You Are Using These Banks, Take Your Money Now As CBN Sends Sanction Message To Them
The Central Bank of Nigeria has issued a stern warning to primary mortgage banks, Development Finance Institutions, and Microfinance Banks regarding the prompt submission of regulatory returns.
In a recent press released, the Central Bank of Nigeria (CBN), through its Director of Financial Policy and Regulation, Dr. Valentine Ururuka, expressed deep concern over the delayed submission of periodic returns related to Financial institutions’ Annual reports.
The CBN underscored the critical importance of adherence to regulatory guidelines in maintaining financial stability and transparency within the banking sector.
The CBN highlighted the significant role played by Primary Mortgage Banks (PMBS) in the real estate and housing finance industry, emphasizing that their compliance with reporting requirements is essential for effective oversight. Specifically referencing Section 24 of the Banks and Other Financial Institutions Act 2020, the CBN stressed the timely. submission of regulatory returns, including the Financial Institutions Annual (FinA) reports.
According to the regulatory guidelines, PMBs are required to submit their monthly FinA returns no later than the 5th day following the end of each month. To accommodate weekends or public holidays, PMBs are instructed to submit returns on the preceding workday.
In cases where PMBs encounter technical issues hindering timely submission, the CBN requires prompt notification via email, along with evidence of the technical issue, to facilitate resolution.
Similarly, the CBN expressed concern over the tardiness and non- submission of periodic returns on Financial Activities by Development Finance Institutions (DFIs) and Microfinance Banks (MFBs). Like PMBs, DFIs and MFBs are reminded of the regulatory provisions outlined in Section 24 of the Banks and Other Financial Institutions Act 2020.
DFIs and MFBs are urged to ensure the timely submission of their monthly FinA returns, with sanctions looming for future breaches. Again, in cases of technical issues, timely notification to the CBN is required for resolution.
The CBN’s stern warning underscores the importance of regulatory compliance among financial institutions, emphasizing the need for timely and accurate reporting to uphold the integrity of the banking sector and safeguard the overall financial system.
Financial institutions are urged to take
these guidelines seriously and prioritize
the timely rendition of all regulatory returns to avoid potential repercussions.
(PUNCH)