The Central Bank of Nigeria (CBN) has issued a stern warning to development finance institutions (DFIs), primary mortgage banks (PMBs), and microfinance banks (MFBs) in Nigeria, cautioning them against late submission of regulatory returns through the Financial Institutions Returns Automation (FinA) application.
In letters addressed to the institutions and dated March 5, 2024, the apex bank emphasized that failure to submit returns on time would result in sanctions.
FinA serves as an offsite surveillance automation system enabling financial institutions to submit returns online to the CBN.
Referring to Section 24 of the 2020 Banks and Other Financial Institutions Act, the CBN underscored its intention to penalize MFBs, PMBs, and DFIs that fail to submit their returns before the 5th day of each month.
According to the Director of Financial Policy and Regulation, Valentine Ururuka, who signed the letter, the CBN expressed disappointment at the delayed and non-rendering of periodic returns on FinA by these financial institutions.
The letter stated, “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.”
Furthermore, it instructed these institutions to ensure that their monthly FinA returns are submitted on or before the 5th day following the end of each month. In cases where the 5th day falls on a weekend or public holiday, returns should be submitted on the preceding workday.
The CBN’s communication concluded with a strong advisory for timely submission of regulatory returns, with a warning of sanctions for future breaches of the directive.
This directive underscores the CBN’s commitment to ensuring compliance with regulatory requirements and maintaining transparency and accountability within the financial sector.
