CBN TO PUNISH FINANCIAL INSTITUTIONS FOR LATE SUBMISSION OF RETURNS

The Central Bank of Nigeria (CBN) has advised development finance institutions (DFIs), primary mortgage banks (PMBs), and microfinance banks (MFBs) in Nigeria against late submission of regulatory returns through the Financial Institutions Returns Automation (FinA) application.

In separate letters to the institutions dated March 5, 2024, the apex bank frowned at the failure to submit their returns as at when due would attract sanction.

FinA is an offsite surveillance automation system for online submission of returns by financial institutions to CBN.

Citing Section 24 of the 2020 Banks and Other Financial Institutions Act, the apex bank threatened to sanction MFBs, PMBs, and DFIs that fail to submit their return before the 5th day of any month.

In the letter 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