CBN Warns Of Penalties For Late Monthly Return Filings.

 Regarding the prompt submission of their required monthly returns using the Financial Institutions Returns Automation (FinA) programme, the Central Bank of Nigeria issued a strong warning to all development finance institutions, primary mortgage banks, and microfinance banks on Wednesday.

FinA, a USAID-sponsored sophisticated off-site monitoring automation system, allows financial institutions to electronically submit their returns to the CBN. Its main features, which were implemented in 2011, are online data collection from FIs, database storage, data processing and analysis, and report generation.

Valentine Ururuka, the CBN's Director of Financial Policy and Regulation, signed a letter alerting the institutions. The ongoing problem of periodic returns on FinA being submitted late or not at all deeply concerns the bank. The Banks and Other Financial Institutions Act (BOFIA) 2020's Section 24 was cited to highlight the necessity of timely submission of regulatory returns. The deadline for submitting monthly FinA returns to the financial institutions is the fifth day following the end of each month, at the latest.

“Consequently, all are to ensure that 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 the previous work day.

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

The letter also specified how notifications would be sent if technological difficulties prevented on-time submission.

Before the submission date, financial institutions must send an email to OFIreturns@cbn.gov.ng notifying the CBN of the technical problem and providing comprehensive details and supporting documentation.