Submit returns or face sanctions, CBN warns mortgage, microfinance banks

The Central Bank of Nigeria (CBN) has warned all development finance institutions (DFIs), primary mortgage banks (PMBs), and microfinance banks (MFBs) in the country regarding the late submission of regulatory returns.

In separate letters dated March 5, 2024, the CBN expressed strong disapproval concerning the ongoing issue of late submission of returns by banks on the financial analysis (FinA) system.

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

The apex bank, citing Section 24 of the 2020 Banks and Other Financial Institutions Act, asked 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.”

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

Godwin Emefiele, former governor of the apex bank had said the firms failed to “fulfil or comply with the conditions subject to which their licences were granted; or failed to comply with the obligations imposed upon them by the Central Bank of Nigeria in accordance with the provisions of Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5.”