The Central Bank of Nigeria (CBN) has said that going forward, development finance institutions (DFIs), primary mortgage banks (PMBs), and microfinance banks (MFBs) in the country who submit regulatory returns late would be met with snctions.
In separate letters to the institutions, the CBN expressed strong disapproval concerning the ongoing issue of late submission of returns by banks on the financial analysis (FinA) system.
FinA is an offsite surveillance automation system for online submission of returns by financial institutions to the CBN.
Citing Section 24 of the 2020 Banks and Other Financial Institutions Act, the CBN directed MFBs, PMBs, and DFIs to submit their return “before the 5th day after the month end”, threatening to sanction defaulters.
“The Central Bank of Nigeria has observed with dismay the late and non-rendition of periodic returns on FinA by Microfinance Banks (MFBs), Development Finance Institutions (DFIs) and Primary Mortgage Banks (PMBs),” the letter reads.
“All MFBs, DFIs and PMBs are therefore reminded of the provisions of Section 24 of the Banks and Other Financial Institutions Act (BOFIA) 2020, and other extant regulations on timely rendition of regulatory returns.
“Consequently, all MFBs, DFIs and PMBs are to ensure that their monthly FinA returns are submitted on or before the 5th day after the month 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.”
