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The Central Bank of Nigeria (CBN) has introduced stringent penalties for agent banking activities that contravene its revised guidelines. The apex bank’s move aims to promote compliance, enhance financial stability, and protect consumers.
Penalties for Non-Compliance.
The CBN has outlined several penalties for non-compliance, including:
- *Operating without a valid Super Agent license*: A fine of not less than N10 million and N200,000 for each day the default persists
- *Engaging in non-permissible activities*: A fine of not less than N5 million and N100,000 for each day of the default, in addition to forfeiting estimated profits
- *Failure to obtain approval*: A fine of N2 million for financial institutions and N2 million for each director or senior management staff responsible for the infraction
- *Failure to maintain proper accounting records*: A fine of not less than N5 million for financial institutions and N2 million for officers who wilfully caused the default
Non-Permissible Activities.
The CBN has identified several activities that are not permissible under the guidelines, including:
- *Super Agents undertaking agent banking activities*: Super Agents are not allowed to engage in agent banking activities
- *Agents offering banking services*: Agents are not permitted to offer banking services such as customer account opening, loan underwriting, investment, or forex services
- *Delegating agent activities*: Agents are not allowed to delegate their activities to other entities or individuals
- *Using non-human or automated machines as agents*: Non-human or automated machines cannot be used as agents
- *Other non-permissible activities*: Any other activity deemed non-permissible by the CBN
*Disqualification Criteria*
The CBN has also outlined criteria for disqualifying individuals or entities from participating in agent banking activities, including :
- *Non-performing loans*: Individuals or entities with non-performing loans within 12 months preceding their appointment or renewal as agent bankers are not eligible
- *Bankruptcy*: Persons declared bankrupt or companies under insolvency are not eligible
- *Watch-listed BVNs*: Individuals with watch-listed Bank Verification Numbers (BVNs) are not eligible
The CBN’s revised guidelines aim to promote a more robust and compliant agent banking ecosystem, enhancing financial stability and protecting consumers.
CBN Cracks Down on Non-Compliant Agent Banking Activities – By Clem Aguiyi
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