Regulatory Alerts2009-07-20 | OFID-03-2009Warning to All Primary Mortgage Institutions,MIcrofinance Banks and Finance Companies on the Issuance of False/Forged Statements of Accounts
The Central Bank of Nigeria issued a circular on July 20th, 2009, addressing all Primary Mortgage Institutions and Community/Microfinance Banks. This warning comes after it was observed that some institutions continued to issue falsified or forged statements of accounts, potentially exaggerating or misrepresenting the financial standing of clients, with a focus on issuing such documents in support of visa applications. The bank warned that staff involved would be blacklisted and referred to law enforcement agencies for further investigation and prosecution, while affected institutions could also face sanctions.
CENTRAL BANK OF NIGERIA Tinubu Square P.M.B. 12194 Lagos
CBN website: www.cenbank.org Our Ref: OFI/DIR/GEN/ CIR/02/003 20th July, 2009 Tel: 01-2662483 Fax: 01-2668667 CIRCULAR
TO ALL CHAIRMEN, DIRECTORS, MANAGING DIRECTORS AND STAFF
OF ALL PRIMARY MORTGAGE INSTITUTIONS AND COMMUNITY
BANKS/MICROFINANCE BANKS
WARNING TO ALL PRIMARY MORTGAGE INSTITUTIONS, MICROFINANCE BANKS AND FINANCE COMPANIES ON THE ISSUANCE OF FALSE/FORGED STATEMENTS OF ACCOUNTS.
In spite of the earlier CBN Circular No.OFID/DIR/CIR/GEN/Vol.01/001 of 25th June, 2007 it has recently been observed that some primary mortgage institutions (PMIs) and microfinance banks (MFBs) continued to issue falsified or forged statements of accounts on behalf of their customers (and even non-customers), with a view to exaggerating or misrepresenting the financial standing of the affected persons. In particular, our attention has been drawn to false/forged statements of accounts issued by some PMIs and MFBs for presentation to Embassies and High Commissions in support of applications for entry visa to the affected countries. These immoral, unethical and illegal acts undermine the integrity of the financial system in general and the other financial institutions (OFIs) sub-sector in particular. For the avoidance of doubt, any staff of any financial institution found to be engaged in this act shall be blacklisted and referred to the Police and the Economic and Financial Crimes Commission (EFCC) for further investigation and prosecution, while the affected institution shall be appropriately sanctioned. Please bring this circular to the attention of all staff in your institution.
O. A. Fabamwo
Ag.Director, Other Financial Institutions Dept.