The Central Bank of Nigeria (CBN) has cautioned development finance institutions (DFIs), primary mortgage banks (PMBs), and microfinance banks (MFBs) in Nigeria against the tardy submission of regulatory returns via the Financial Institutions Returns Automation (FinA) application.
In letters addressed to the institutions and dated March 5, 2024, the central bank expressed disapproval of their failure to promptly submit their returns, warning that this negligence would result in sanctions.
The FinA system serves as an offsite surveillance automation platform enabling financial institutions to submit their returns to the CBN online.
Referring to Section 24 of the 2020 Banks and Other Financial Institutions Act, the central bank cautioned that MFBs, PMBs, and DFIs failing to submit their returns before the 5th day of each month would face sanctions.
In the letter 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.”