CBN imposes N5m fine on illegal agent banking activities

By Elizabeth Adegbesan

THE Central Bank of Nigeria (CBN) has announced that immoderate cause recovered engaging successful non-permissible activities nether its recently revised Agent Banking Guidelines volition look a minimum punishment of N5 cardinal for the offence and N100,000 for each time the default continues, successful summation to forfeiting immoderate nett made from specified activities.

According to the revised guidelines, “Operating without a valid Super Agent licence attracts a good of not little than N10 cardinal and N200,000 for each time the default persists. Engaging successful non-permissible cause banking activities attracts a good of not little than N5 cardinal and N100,000 for each time of the default. In addition, the entity shall forfeit the estimated profit.”

The CBN further stated that nonaccomplishment to get its support oregon a ‘No Objection’ arsenic stipulated successful the guidelines attracts a good of N2 cardinal for the fiscal instauration (FI) and for each manager oregon elder absorption unit liable for the infraction. Similarly, nonaccomplishment to support due accounting records attracts a good of not little than N5 cardinal for the FI, portion immoderate serviceman who wilfully caused the default volition wage a minimum of N2 million.

Non-permissible activities nether the guidelines include: Super Agents undertaking cause banking activities; Agents offering banking services specified arsenic lawsuit relationship opening, indebtedness underwriting, investment, oregon forex services; Delegating permissible cause activities to different entity oregon individual; Using non-human oregon automated machines arsenic agents; Any different enactment deemed non-permissible by the CBN.

The apex slope besides ruled that individuals oregon entities with non-performing loans (NPLs) wrong 12 months preceding their assignment oregon renewal arsenic cause bankers are unfit for specified roles. Others disqualified see persons declared bankrupt, companies nether insolvency, and individuals whose Bank Verification Numbers (BVNs) are watch-listed.

The CBN explained that the reappraisal of the Agent Banking Guidelines became indispensable owed to the accelerated enlargement and expanding sophistication of the assemblage driven by technological advancement. It said the caller guidelines consolidate each existing policies into a azygous papers to comprehensively code emerging issues wrong the cause banking ecosystem.

The station CBN imposes N5m good connected amerciable cause banking activities appeared archetypal connected Vanguard News.