Fidelity bank banner Bayelsa State banner
CBN seeks abolition of shell banks

By Abiemwense Moru on 14/02/2018

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 949

•CBN Governor Godwin Emefiele
•CBN Governor Godwin Emefiele

The Central Bank of Nigeria (CBN) has called for the abolition of shell banks in the country, saying they serve as institutions for money laundering.

Shell banks are institutions that carry out activities where they are not licensed.

Mr Godwin Emefiele, CBN Governor, made the request in Abuja on Tuesday at a public hearing organised by the House committee on Banking and Currency on a Bill to amend the Banking and Other Financial Institutions Act (BOFIA) and other bills.

He said that the shell banks, apart from being used for money laundering, distort the banking system and might pose a problem to regulatory agencies.

Emefiele, represented by the Director, Legal Services Department, Mr Johnson Akinwunmi, said: “We wish to propose the introduction of new subsections 3(6) and (7) for the proscription of shell banks in response to the latest recommendations of the Financial Action Task Force (FATF) on money laundering.”

Similarly, the CBN is also seeking additional powers to revoke licences of banks and “power to inject funds into a falling bank by way of equity participation up to a level that guarantees control by CBN”.

The additional powers, according to the governor, is to enable the CBN acquire equity investment institutions and its ability to ensure a sound financial system.

The CBN also backed the House of Representatives in imposing stiffer penalties and terms of imprisonment of certain offences on erring commercial banks and their staff.

But in his presentation, the Director of Legal/board secretary, Nigeria Deposit Insurance Corporation (NDIC), Mr Belema Taribo, opposed the proposed fines saying they were too high.

“The NDIC, as a deposit insurer supports the passage of the bill into law as the current fine of N1,000 does not meet contemporary realities.

“However, it is our submission that the proposed penalty of N200,000 is above 100 per cent increment from the current penalty. In view of the above, we propose a fine of N5,000.”

On the issuance of licence, NDIC proposed that the CBN should seek its consent before granting any application for banking licence.

“This is to enable the corporation have a prior evaluation of the applicants with regard to insurance of deposits.”

In his welcome address, Chairman of the House Committee on Banking and Currency, Rep. Jones Onyereri, said that increase in penalties to the bank operators would streamline the operations of such banks to conform to international best practices.

He said that the proposed amendments to the Bofia Act 2017 was initiated by three lawmakers, which include Reps. Daniel Reyeneiju (Delta-PDP), Betty Apiafi (Rivers-PDP) and Jones Onyeriri (Imo-PDP).

Some of the penalties in the proposed amendments to the BOFIA Act 2017 include a fine of N20 million on banks that fail to comply with the conditions of the licence, a fine of N20 million on any director that fails to declare any property he/she owns that runs contrary to the Act.

“A fine of N10 million against a director or manager that fails to keep a book of account and a fine of N2 million on banks that fail to publish its annual report of its general meeting in two reputable national dailies among others.”

While declaring the public hearing opened, the Speaker, Mr Yakubu Dogara, said the House opted for stiffer penalties of millions of Naira as fine for commercial banks which engaged in illegal deduction of spurious charges on customers’ accounts domiciled in such banks.

Dogara, who was represented by the House Deputy Minority Leader, Rep. Chukwuka Onyema, said that the process of law making was dynamic noting that bank customers have not stop compiling of spurious charges on their accounts. (NAN)

 

Source News Express

Posted 14/02/2018 12:26:11 AM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

 

You may also like...
2019: Why should Ikedi Ohakim run? By Collins...

JAMB clarifies 2016 admission strategy

Anambra market leader in DSS net over revenue...

Enugu DISCO, Geometric Power resolve dispute over power...

Help! Our children can no longer write English,...

United, Reds clash in EPL star match, Blues...

CMDs appeal to striking resident doctors

‘Enough is Enough!’: Jonathan orders troops deployment to...

Evil maid jailed for assaulting toddler

ECOWAS and Singapore to deepen economic ties

Governor proffers solution to arms proliferation

Okowa calls for synergy among security agencies •Pledges...

 

Latest News States owe N41bn in federal taxes Joint NASS panel fails to reach agreement on INEC budget 2019: Nigeria needs a job creator as President — Atiku Accused disappears without trace after arraignment in Lagos Senators to sponsor motion demanding judicial probe of NASS invasion Two kids found dead in soakaway pit in Kwara Abia medical doctors protest kidnap of colleague Court adjourns contempt case against INEC Chairman indefinitely EFCC, INTERPOL parley to fight human trafficking, migrant smuggling Eko DISCO moves to eradicate “crazy bills” Okowa gives December deadline for development of industrial parks U.S. Embassy may resume Abuja consular services after Eid-el-Kabir holidays

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (377,606 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (366,564 views) Shameless Genevieve Nnaji exposes breasts in public (296,275 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (241,843 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (222,612 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (217,090 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (192,545 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (174,719 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (159,613 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (158,294 views) Lagos plane crash: Journalist releases victims’ names (152,711 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (143,016 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (56) Business & Economy (3,458) Business Verdict (48) Columnists (910) Complaints & Requests (95) Enterprise & Opportunities (207) Entertainment (528) Features (634) Global Business Monitor (294) International (2,274) Interview (161) Live Commentary (28) Love Matters (134) News (38,068) Opinion (1,059) Pidgin (11) Politics (6,062) Religion (816) Sports (1,647) Stock Watch (33) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Real Madrid vs Atletico Madrid 2-4 Highlights and Goals

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement