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 regarding the timely submission of regulatory returns through the Financial Institutions Returns Automation (FinA) application. Failure to comply, the apex bank stated, would result in sanctions.
In letters dated March 5, 2024, addressed separately to these financial institutions, the CBN expressed its disapproval of their tardiness in submitting their returns. The FinA system serves as an offsite surveillance automation platform for the online submission of returns by financial institutions to the CBN.
Signed by the Director of Financial Policy and Regulation, Valentine Ururuka, the letter underscored the CBN’s concern, stating, “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).”
Citing the Banks and Other Financial Institutions Act (BOFIA) 2020 and other relevant regulations, the CBN reminded all MFBs, DFIs, and PMBs of the necessity for timely regulatory returns submission. They are required to submit their monthly FinA returns on or before the 5th day following the end of each month. In instances where the 5th day falls on a weekend or public holiday, returns must be submitted on the preceding workday.
Financial institutions were strongly advised to ensure compliance with regulatory returns timelines, as future breaches would incur sanctions.
