Timely Regulatory Returns Submission: CBN Warns Mortgage Banks of Sanctions

The Central Bank of Nigeria (CBN) has recently issued a stern warning to all primary mortgage banks (PMBs) in the country regarding the timely submission of regulatory returns.

In a press release dated March 5, 2024, the apex bank expressed its concern over the late and non-rendition of periodic returns related to the Financial Institutions’ Annual (FinA) reports.

According to the CBN, a Primary Mortgage Bank is any company licensed to carry out primary mortgage banking business in Nigeria.

Adherence to regulatory guidelines is crucial for maintaining financial stability and transparency within the banking sector.

PMBs play a vital role in the real estate and housing finance industry, and their compliance with reporting requirements is essential for effective oversight.

The CBN reminded all PMBs of the provisions outlined in Section 24 of the Banks and Other Financial Institutions Act 2020.

This section specifically addresses the timely rendition of regulatory returns, including the FinA reports. PMBs are required to submit their monthly FinA returns on or before the 5th day after the month-end.

This deadline ensures that the CBN receives accurate and up-to-date information about the financial health of these institutions.

In cases where the 5th day falls on a weekend or public holiday, PMBs are instructed to submit their returns on the previous workday.

The flexibility aims to accommodate any disruptions caused by non-working days.

The CBN issued a strong warning that future breaches of regulatory reporting deadlines will be met with appropriate sanctions, which 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.”

Furthermore, the statement added that PMBs encountering technical issues preventing timely submission must promptly notify the CBN via email, including evidence of the technical issue to facilitate resolution.

The CBN urges all PMBs to take these guidelines seriously and ensure the timely rendition of all regulatory returns. Failure to comply may have serious consequences for the banks and the overall financial system.