CBN Warns PMBs to Report Regulatory Returns Early

In its recent warnings, the Central Bank of Nigeria has asked mortgage banks nationwide to submit regulatory returns early. 

This was because it also warned Development Finance Institutions and Microfinance Banks sternly.

On March 5, the apex bank released on its website a document with the reference number FPR/DIR/, signed by Dr. Valentine Ururuka, the Director of Financial Policy and Regulation, saying that the CBN is disappointed over the late non-rendition of periodic returns related to the Financial Institutions’ Annual reports.

According to CBN, “Primary Mortgage Bank shall be construed as any company licensed to carry out primary mortgage banking business in Nigeria.”

The apex bank stressed the importance of adherence to regulatory guidelines, which is crucial for maintaining financial stability and transparency within the banking sector.

In Nigeria, PMBs play an essential role in the real estate and housing finance industries, and compliance with reporting requirements is necessary for effective oversight.

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

This section explicitly 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. This flexibility aims to accommodate any disruptions caused by non-working days.

The CBN also strongly warned that future breaches of regulatory reporting deadlines will be met with appropriate sanctions.

These sanctions 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, as well as other existing regulations on the timely rendition of regulatory returns.

“Consequently, all PMBs must ensure their monthly FinA returns are submitted on or before the 5th day after the month’s end. Where the 5th day falls on a weekend or public holiday, returns shall be submitted on the previous work day.

“You are strongly advised to ensure timely rendition of all regulatory returns, as future breaches shall be sanctioned.”

The statement added that PMBs encountering technical issues preventing timely submission must promptly notify the CBN via email.

The notification should include evidence of the technical issue to facilitate resolution.

It said, “In case of technical issues, you must notify the CBN via email to OFIreturnscbn.qov.nq before the deadline, detailing the technical issue with evidence.”

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