Regulatory Alerts2004-07-19 | TED-AD-55-2004The Need for Prior Clearance of Prospective Employees of Banks
This circular highlights the importance of obtaining prior clearance from the Central Bank of Nigeria (CBN) before employing new staff, especially above entry level, to prevent fraud and forgeries within the banking system. It emphasizes that any person terminated or dismissed due to fraud or dishonesty cannot be employed in Nigerian banks according to Section 44 of the Banks and Other Financial Institutions Act 1999. Banks must also report all terminated/dismissed staff to the CBN and avoid advising such individuals to simply resign. The Director of Banking Supervision, O.I. Imala, stresses that it is both the responsibility of operators and regulators to maintain integrity within the banking industry by ensuring proper screening and reference checks for all new employees.