Currency Watch

CBN to sanction OFIs for non-compliance with credit bureaux


June 9, 2017 | 3:33 am
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Henceforth, the Central Bank of Nigeria (CBN) will begin to sanction other financial institutions (OFIs) for non-compliance with data exchange agreement with credit bureaux.
Other financial institutions include microfinance banks (MFBs), Finance Companies (FCs), Primary Mortgage Banks (PMBs) and Development Finance Institutions (DFIs).
The CBN had in April 30, 2010, directed banks and other financial institutions to partner the licensed credit bureaux in order to enhance the performance of their operations.
In a letter to OFIs signed by Tokunbo Martins, director, other financial institutions supervisions department, noted that the regulator’s attention had been drown to non-compliance of the provision by these institutions.
“It was also observed that, contrary to the provisions of circular ref. BSD/DIR/GEN/LAB/06/051 dated November 14, 2013, some OFIs do not submit credit information on some categories of customers, especially staff and directors, to Credit Bureaux, while Compliance Officers who disclose such information are victimised,” Martins said in the letter.
Consequently, the CBN said while the victimisation of Compliance Officers’ for disclosing insider related facilities would attract appropriate administrative sanctions, all OFIs are once more reminded to comply with the provisions of the circulars, as failure to comply would henceforth attract penalty.
The sanctions as stated in the letter include the sum of N100,000, N250,000, and N500,000, respectively, shall be imposed on Unit, State and National Licensed Microfinance Banks for each infraction.
The sum of N250,000.00, and N750,000.00 respectively shall be imposed on Finance Companies, State and National Licensed Primary Mortgage Banks (PMBs) for each infraction, while the sum of N1,000,000.00 shall be imposed on Development Financial Institutions (DFIs) for each infraction.
Part of the letter by the CBN reads: “In addition, in view of the need to obtain customers’ consent before disclosing their information to Credit Bureaux, all OFIs are advised to insert a disclosure clause in the Terms and Conditions section of account opening packs for continuous credit information sharing without further recourse to customers”.
Please note that the Central Bank of Nigeria will monitor compliance with the requirements of this circular, and defaulters will be sanctioned accordingly.
Naira on Thursday weakened at the exporters and investors’ window by N1.78k, closing at N375.31k per dollar as against N373.53k traded the previous day, according to data from the FMDQ.
The nation’s currency maintains stability at the black market as it closed at the rate of N364 per dollar while at the interbank spot foreign exchange, the naira was quoted at N305.60k, the same level it was the previous day. The CBN has assured of further stability of the exchange rate as it continues its interventions, which has helped to boost the value of the naira.




June 9, 2017 | 3:33 am
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