Regulatory Alerts2016-09-05 | FPR/DIR/GEN/CIR/06/003Sanctions Grid To Deposit Money Banks That Participate Under The CBN-Nigeria Eelectricity Market Stabilization Facility (CBN-NEMSF)
The above document outlines a series of sanctions that Collection Banks (DMBs) can face for violating the terms and conditions of their participation as Mandate Banks under the Central Bank Nigeria is important. It provides clarity to both the DMB and the Refinancer. Below are some key points summarizing them: 1. Failure to correctly maintain all accounts operated by a DISCO domiciled with it, including all Feeder Collection Accounts in accordance with the terms of the Accounts Administration Agreement. 2. Collection Banks (DMB) could face penalties ranging from N10, 00 to N5, 00 for any breaches or defaults in their duties and responsibilities under this document. 3. This document specifies a series of potential violations that DMBs must avoid. It outlines various types of violations that these institutions (DMBs) could potentially commit. 4. Additionally, this document emphasizes the importance of transparency in all activities and operations conducted by both the DMB and the DISCO. Violators face severe sanctions, including termination of their participation as Mandate Banks if found to have provided false or misleading information. 5. This document also highlights the need for DMBs to maintain accurate records of all accounts operated by a DISCO domiciled with it. Failure to do so could lead to severe sanctions, including termination of their participation as Mandate Banks under this document.