CBN Issues Warning to Microfinance Banks and Others: Submit Returns or Face Sanctions

The Central Bank of Nigeria mortgage banks, Microfinance Banks and Development Finance Institutions in the country regarding the timely submission of regulatory returns.

The apex bank issued the warning in recent separate notices signed by Valentine Ururuka for the Director of Financial Policy and Regulatory Department.

The statement expressed strong disapproval concerning the ongoing issue of late submission of returns by banks on the financial analysis (FinA) system.

Accordingly, the CBN expressed dismay over the late and non-renewal of periodic returns related to the financial institutions’ annual reports.

The bank urged all PMBs, MFBs and DFIs to subsequently submit their monthly FinA reports on or before the 5th day after the end of the month.

CBN advised those institutions on timely rendition of all regulatory returns as future breaches shall be sanctioned.

“The Central Bank of Nigeria has observed with dismay the late and non-rendition of periodic returns- on FinA by Primary Mortgage Banks.

“All PMBs are therefore reminded of the provisions of Section 24 of the Banks and Other Financial Institutions Act 2020 and other extant regulations on timely rendition of regulatory returns.

“Consequently, all PMBs are to ensure that their monthly FinA returns are submitted on or before the 5th day after the Month’s end. Where the 5th day falls on a weekend or public holiday, returns shall be submitted the previous work day.

“You are strongly advised to ensure timely rendition of all regulatory returns as future breaches shall be sanctioned.

“In case of technical issues, you are required to notify the CBN via email OFIreturnscbn.gov.ng before the deadline, detailing with evidence the technical issue”, one of the notices reads.

TheAccording to CBN, “Primary Mortgage Bank shall be construed as any company that is licensed to carry out primary mortgage banking business in Nigeria.” apex bank emphasised that adherence to regulatory guidelines is crucial for maintaining financial stability and transparency within the banking sector.