CBN to sanction DFIs, PMBs, MfBs over late submission of returns

The Central Bank of Nigeria (CBN) has indicated that it would sanction development finance institutions (DFIs), primary mortgage banks (PMBs), and microfinance banks (MFBs) in Nigeria over 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 expressed strong disapproval concerning late submission of returns by the banks on the financial analysis (FinA) system.

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.

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.”

Recall that on May 24, 2023, CBN revoked the operating licences of 132 MFBs, three finance companies, and four PMBs.

The affected institutions had defaulted in rendition of returns over a long period of time indicated that their operations have been imperiled.