NewsExpress advert Yudala 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: 672

•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

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

 

You may also like...
Nigeria to auction N110bn in bonds next week...

Court freezes Ozekhome’s account for alleged money laundering...

Cloudy weather, thunderstorms, localised rain expected today: NiMET...

Again, Marwa dumps PDP, eyes APC

94 students reported missing after Boko Haram attack...

Make your research relevant to national development, Udoma...

Cloudy conditions to prevail today, with localised thundery...

Controversial APC lawyer makes dramatic court appearance

We shall work hard to implement 2017 budget...

Kirikiri Customs Command gives tanker drivers 2 wks...

Arole Oodua, King Okunade Sijuwade…A Tribute By Tola...

Shell offers Ogoni youths another opportunity to start...

 

Latest News Zuma’s exit: A lesson in party supremacy US speeds up relocation of embassy to Jerusalem, fixes new date Britain offers to help rescue abducted Dapchi schoolgirls Ozubulu Church Massacre: Unknown people threatening my life — Witness Dapchi Girls: Hold Presidency responsible for abduction — PDP •Accuses FG of lying to Nigerians APC crisis: Oyegun meets Buhari over Tinubu’s outburst Woman rescues preteen from kidnap attempt by pretending to be girl’s mother NBTE accredits 11 colleges in Anambra •Govt. prepares to recruit retired teachers Lagos Neighborhood Security arrests 6 cult members for rape Yobe Attack: FG has failed to learn from Chibok — BBOG Presidency confronts Transparency International over poor marks for anti-graft crusade Air safety: Reps to audit all registered aircraft in the country

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (326,715 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (318,620 views) Shameless Genevieve Nnaji exposes breasts in public (255,332 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (209,429 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (195,025 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (188,096 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (163,835 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (147,079 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (140,623 views) Lagos plane crash: Journalist releases victims’ names (129,876 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (128,481 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (123,414 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (34) Business (2,906) Business Verdict (34) Columnists (806) Complaints & Requests (94) Enterprise & Opportunities (203) Entertainment (446) Features (549) Global Business Monitor (226) International (1,805) Interviews (143) Live Commentary (28) Love Matters (105) News (33,092) Opinion (884) Pidgin (10) Politics (4,522) Religion (684) Sports (1,440) Stock Watch (28) AMA & Al Jazeera Global Update

 

 

Football president George Weah puts Liberian army to the test

 

APO Group Partner

 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement