The Central Bank of Nigeria (CBN) has issued a stern warning to all primary mortgage banks (PMBs) in the country regarding the timely submission of regulatory returns.
In a press release dated March 5 and signed by Dr. Valentine Ururuka, Director of Financial Policy and Regulation at the CBN, the apex bank expressed concern over the delay and non-rendition of periodic returns related to the Financial Institutions’ Annual reports.
The CBN clarified that a Primary Mortgage Bank is any company licensed to carry out primary mortgage banking business in Nigeria. It stressed the importance of adherence to regulatory guidelines for maintaining financial stability and transparency within the banking sector.
PMBs play a crucial role in the real estate and housing finance industry, and their compliance with reporting requirements is essential for effective oversight.
The CBN reminded all PMBs of the provisions outlined in Section 24 of the Banks and Other Financial Institutions Act 2020, which addresses the timely rendition of regulatory returns, including the Financial Institutions Annual (FinA) reports.
PMBs are required to submit their monthly FinA returns on or before the 5th day after the month-end to ensure the CBN receives accurate and up-to-date information about the financial health of these institutions.
In cases where the 5th day falls on a weekend or public holiday, PMBs are instructed to submit their returns on the previous workday to accommodate any disruptions caused by non-working days.
The CBN warned that future breaches of regulatory reporting deadlines would result in appropriate sanctions, including fines, restrictions, or other disciplinary measures.
PMBs encountering technical issues preventing timely submission must promptly notify the CBN via email, providing evidence of the technical issue to facilitate resolution.
The CBN urged all PMBs to take these guidelines seriously and ensure the timely rendition of all regulatory returns, emphasizing that failure to comply may have serious consequences for the banks and the overall financial system.
