In a recent press release dated March 5, 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.
The press release, signed by Dr Valentine Ururuka, Director of Financial Policy and Regulation at the CBN, expressed concern over the late and non-rendition of periodic returns related to the Financial Institutions’ Annual reports.
The CBN emphasized the importance of adherence to regulatory guidelines for maintaining financial stability and transparency within the banking sector.
PMBs, which play a crucial role in the real estate and housing finance industry, are required to comply with reporting requirements outlined in Section 24 of the Banks and Other Financial Institutions Act 2020.
Specifically, PMBs must submit their monthly Financial Institutions Annual (FinA) returns on or before the 5th day after the month-end. The CBN stressed that this deadline ensures the timely receipt of accurate financial information.
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 will be met with appropriate sanctions, including fines, restrictions, or other disciplinary measures. PMBs encountering technical issues preventing timely submission are required to 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.
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