Regulatory Alerts2017-05-10 | OFI/DIR/CIR/GEN/17/151RE: Data Exchange Agreements with at least Two Licenced Credit Bureaux in Nigeria for OFIs
The Central Bank of Nigeria reminds other financial institutions (OFIs) to comply with the requirements of two previous circulars. OFIs must establish data exchange agreements with credit bureaus, obtain a credit report before granting any facility, and periodically assess each borrower's exposure to the financial system. Compliance officers who disclose insider-related facilities will not be victimized; however, failure to comply with these requirements may result in penalties ranging from N100,000 to N750,000 or even up to N1,000,000 for development finance institutions. To facilitate continuous credit information sharing, OFIs are advised to insert a disclosure clause in the account opening packs' terms and conditions.]
[ 09-462-35439 ofid@cenbank.org Ref: OFI/DIR/CIR/GEN/17/151 CENTRAL BANK OF NIGERIA Other Financial Institutions Supervision Department 33, Tafawa Balewa Way, Central Business District P. M. B. 0187 Garki, Abuja.
May 10, 2017
Letter To All Other Financial Institutions (Ofis)
RE: DATA EXCHANGE AGREEMENTS WITH AT LEAST TWO LICENCED CREDIT BUREAUX IN NIGERIA The attention of the Central Bank of Nigeria has been drawn to Other Financial Institutions (OFIs) noncompliance with the provisions of our circular ref. BSD/DIR/GEN/CIR/04/014 dated April 30, 2010, which requires all OFIs to establish Data Exchange Agreements with Credit Bureaux, obtain credit report before granting any facility and, periodically, determine each borrowers' current exposure to the financial system.
It was also observed that, contrary to the provisions of circular ref. BSD/DIR/GEN/LAB/06/051 dated November 14, 2013, some OFIs do not submit credit information on some categories of customers, especially staff and directors, to Credit Bureaux, while Compliance Officers who disclose such information are victimised.
Consequently, while the victimization of compliance officers' for disclosing insider related facilities would attract appropriate administrative sanctions, all OFIs are once more reminded to comply with the provisions of the above circulars as failure to comply would henceforth attract the following penalties: a.
The sum of N100,000.00 N250,000.00 and N500,000.00 respectively shall be imposed on Unit, State and National licenced Microfinance Banks for each infraction.
b. The sum of N250,000.00, N500,000.00 and N750,000.00 respectively shall be imposed on Finance Companies, State and National licenced Primary Mortgage Banks (PMBs) for each infraction.
The sum of \1,000,000.00 shall be imposed on Development Finance Institutions (DFIs) for each infraction In addition, in view of the need to obtain customers' consent before disclosing their information to Credit Bureaux, all OFIs are advised to insert a disclosure clause in the Terms and Conditions section of account opening packs for continuous credit information sharing without further recourse to customers. Please note that the Central Bank of Nigeria will monitor compliance with the requirements of this circular, and defaulters will be sanctioned accordingly.
an 'Tokunbo Martins (Mrs) Director, Other Financial Institutions Supervision Department Central Bank of Nigeria c.