The Central Bank of Nigeria (CBN) has renewed its commitment to enforcing regulatory compliance among Development Finance Institutions (DFIs), Primary Mortgage Banks (PMBs), and Microfinance Banks (MFBs), threatening sanctions over late submission of returns.
The warning comes through separate communications issued on March 5, emphasizing the bank’s intolerance for delays in the submission of returns via the Financial Institutions Returns Automation (FinA) application.
According to statement, FinA, an offsite surveillance system designed for the online submission of returns, is at the core of CBN’s strategy for ensuring timely financial reporting.
The bank’s latest move underscores a rigorous stance against non-compliance, referencing Section 24 of the 2020 Banks and Other Financial Institutions Act (BOFIA) to underscore the seriousness of timely returns submission.
Valentine Ururuka, Director of Financial Policy and Regulation at CBN, expressed the bank’s disappointment over the recurring issue of late submissions. “The Central Bank of Nigeria has observed with dismay the late and non-rendition of periodic returns on FinA by MFBs, DFIs, and PMBs,” Ururuka stated in the notice to financial institutions. He further reminded them of their obligations under BOFIA 2020 and other relevant regulations, mandating that monthly FinA returns be submitted within five days after the end of each month.
Related Posts
- Obaseki Faults CBN Monetary Policy, Says its Insufficient for Economic Woes
- CBN orders banks to sell dollar reserve within 24 hours
- Ooni of Ife Applauds EFCC for Tackling Illegal Foreign Exchange Operators
- The History of Nigerian Money
It was stated that the institutions are expected to file their returns on the preceding workday. The CBN’s message was clear: “You are strongly advised to ensure timely rendition of all regulatory returns as future breaches shall be sanctioned.”
This announcement follows the CBN’s previous action on May 24, 2023, where it revoked the operating licenses of 132 MFBs, three finance companies, and four PMBs for prolonged failures in returns submission, signaling a potentially perilous fate for institutions that continue to neglect their reporting duties.
This stringent measure by the CBN is seen as a move to safeguard the integrity and stability of Nigeria’s financial sector, ensuring that all participating institutions adhere strictly to regulatory requirements.
