The Central Bank of Nigeria will be taking action against Development Finance Institutions, Primary Mortgage Banks, and Microfinance Banks for not submitting their reports on time.
The Central Bank of Nigeria has mentioned that it will impose penalties on development finance institutions, primary mortgage banks, and microfinance banks in Nigeria for not submitting regulatory reports on time through the Financial Institutions Returns Automation (FinA) application.
On March 5, 2024, the central bank sent individual letters to the institutions, showcasing significant concern over the banks’ delayed submission of returns through the financial analysis (FinA) system.
FinA serves as an external monitoring automation platform enabling financial institutions to electronically submit returns to the CBN.
According to Section 24 of the 2020 Banks and Other Financial Institutions Act, the central bank has warned that microfinance banks, primary mortgage banks, and development finance institutions could face penalties if they do not submit their reports by the 5th day of each month.
The letters signed by the Director of Financial Policy and Regulation, Valentine Ururuka, the apex bank stated: “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.”
CBN to sanction banks over late submission of reports
