The Central Bank of Nigeria (CBN) has cautioned all primary mortgage banks in the nation about the importance of promptly submitting regulatory returns.
Furthermore, the Central Bank of Nigeria issued a strong warning to Development Finance Institutions and Microfinance Banks.
In a press release dated March 5 and bearing reference number FPR/DIR/PUB/LET/001/022, published on its website and signed by Dr. Valentine Ururuka, Director of Financial Policy and Regulation, the CBN expressed concern about the delayed or non-submission of periodic returns pertaining to the Financial Institutions’ Annual reports.
According to CBN, “Primary Mortgage Bank shall be construed as any company that is licensed to carry out primary mortgage banking business in Nigeria.”
The central bank stressed the importance of adhering to regulatory guidelines to uphold financial stability and transparency within the banking sector.
Primary Mortgage Banks (PMBs) play a critical role in the real estate and housing finance industry, and their compliance with reporting requirements is essential for effective oversight.
In accordance with Section 24 of the Banks and Other Financial Institutions Act 2020, PMBs are reminded by the CBN of their obligation to submit regulatory returns, including the Financial Institutions’ Annual (FinA) reports, in a timely manner.
PMBs are mandated to submit their monthly FinA returns no later than the 5th day following the end of each month. This deadline ensures that the CBN receives accurate and current information regarding the financial status of these institutions.
In instances where the 5th day falls on a weekend or public holiday, PMBs are directed to submit their returns on the preceding business day. This flexibility is intended to accommodate any disruptions caused by non-working days.
The CBN has issued a stern warning that any future breaches of regulatory reporting deadlines will be met with appropriate sanctions.
These sanctions may include fines, restrictions, or other disciplinary measures.
The statement read, “The Central Bank of Nigeria has observed with dismay the late and non-rendition of periodic returns- on FinA by Primary Mortgage Banks.
“All PMBs are therefore reminded of the provisions of Section 24 of the Banks and Other Financial Institutions Act 2020, and other extant regulations on timely rendition of regulatory returns.
“Consequently, all PMBs 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.”
The statement added that PMBs encountering technical issues preventing timely submission must promptly notify the CBN via email.
The notification should include evidence of the technical issue to facilitate resolution.
It said, “In case of technical issues, you are required to notify the CBN via email to OFIreturnscbn.qov.nq prior to the deadline, detailing with evidence the technical issue.”
The CBN emphasizes the importance for all PMBs to adhere to these guidelines diligently and ensure the prompt submission of all regulatory returns. Non-compliance could result in significant consequences for the banks and the broader financial system.
In addition, the central bank expressed serious concerns regarding the delays and failure to submit periodic returns on Financial Activities by Development Finance Institutions.
The statement partly read, “The Central Bank of Nigeria has observed with dismay the late and non-rendition of periodic returns on FinA by Development Finance Institutions.
“All DFIs are therefore reminded of the provisions of Section 24 of the Banks and Other Financial Institutions Act 2020, and other extant regulations on timely rendition of regulatory returns.
“Consequently, all DFIs 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 the same vein, Microfinance Banks were not left out regarding the timely submission of regulatory returns.
The financial regulatory body said, “All MFBs are therefore reminded of the provisions of Section 24 of the Banks and Other Financial Institutions Act 2020, and other extant regulations on timely rendition of regulatory returns.