CBN sends a strong warning to MFBs, DFIs, and PMBs. The Central Bank of Nigeria has been on the news for many reasons in recent times and now again they are at the helm of things, but this time taking a dig at MFBs, DFIs, and PMBs.
CBN Sends Warning to MFBs, DFIs, and PMBs
The Central Bank of Nigeria (CBN) has issued a stern warning to microfinance banks (MFBs), primary mortgage banks (PMBs), and development financial institutions (DFIs), emphasizing the imperative of submitting their financial reports promptly every month through the FinA app.
In letters addressed to these institutions and signed by Valentine Ururuka, Ph.D., the Director of the Financial Policy and Regulatory department, the CBN underscores the critical importance of compliance with this regulatory requirement. While the apex bank does not specify the exact penalty for non-compliance, it cautions that failure to adhere to this directive may lead to serious consequences.
Expressing dissatisfaction with the delays or outright failure of these institutions to submit their financial reports via the FinA platform, the CBN reiterates the significance of timely reporting in maintaining transparency and accountability within the financial sector.
Banks and Other Financial Institutions Act (BOFIA), 2020
Furthermore, the CBN reminds PMBs and MFBs of their obligations under Section 24 of the Banks and Other Financial Institutions Act (BOFIA), 2020, as well as other regulatory provisions mandating the submission of financial reports within stipulated timelines.
Terms Outlined by the CBN
Under the terms outlined by the CBN, MFBs, PMBs, and DFIs are required to furnish their FinA reports on a monthly basis, with the deadline set for the fifth day following the conclusion of each month. In instances where the fifth day falls on a weekend or public holiday, institutions are expected to fulfill this requirement on the last working day preceding the designated deadline.
The CBN’s Commitment to Fostering Transparency within the Financial Services Sector
This directive underscores the CBN’s commitment to fostering transparency, efficiency, and regulatory compliance within the financial services sector. By streamlining the reporting process through the FinA app, the central bank aims to enhance the accuracy and timeliness of financial data submissions, thereby facilitating more effective oversight and risk management practices.
Potential Repercussions Associated With Non-Compliance
In light of the potential repercussions associated with non-compliance, MFBs, PMBs, and DFIs are urged to prioritize adherence to these reporting requirements and ensure that their financial reports are submitted in accordance with the specified timelines.
Failure to do so could result in adverse consequences, including regulatory sanctions and reputational damage, underscoring the importance of proactive compliance measures within the financial industry.
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