CBN to Sanction MFBs, PMBs, DFIs for Failure of Returns

The Central Bank of Nigeria (CBN) is set to impose sanctions on Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs) and Development Finance Institutions (DFIs) if they fail to fill in their monthly returns as when due.

This was stated in separate letters issued by the Director, Financial Policy and Regulation Department of the CBN to MFBs, DFIs and PMBs, titled ‘Late and Non-Rendition of Statutory Monthly Returns to the Central Bank of Nigeria through the FinA Application.’

CBN, in the letters, noted that it had “observed with dismay the late and non-rendition of periodic returns on FinA” by MFBs, DFIs and PMBs. Thus, it said, they “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 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 to OFlreturns@cbn.gov.ng before the deadline, detailing with evidence the technical issue.”