The Central Bank of Nigeria (CBN) has created a new department that will regulate the activities of the financial Technology Companies (Fintechs) and other financial institutions under the digital development.
The Payment System Department of the Apex bank has been charged to oversee and regulate the activities of Financial Technology Companies in Nigeria. The creation of the department is for the CBN to understand the global realities of the digital world.
Why CBN is regulating Fintechs
The Central Bank of Nigeria instituted the department for checks and balance of the Fintech companies. The Payment System Department, through regulation, will ensure Fintechs understand what is expected by them while also helping them address their challenges as well.
Lack of regulation led to Nigeria being blacklisted: The Group Head, ML Safety, Central Bank of Nigeria, (CBN), Joseph Gina, while addressing the purpose of the department during the Annual Retreat of Chief Compliance Officers with the theme: ‘Digital Revolution; Repositioning Compliance Function in Nigeria Banks’, said lack of effective regulation led to Nigeria being blacklisted by countries as one of the none corporative countries.
“In the area of compliance, I think we are doing well that is why you will notice that the CBN is constantly collaborating with the operators and the financial institutions so that we are all in tune with what is happening in the world and making sure that nobody is left behind.
“We are strong as our weakest link and we cannot take things for granted. What is certain is that all their challenges are addressed; also they understand that what is expected of them and once they are able to do that, then they are able to carry out their functions effectively.
“In the area of compliance, you will recall that there was a time Nigeria was placed on the blacklist as one of the none corporative countries because it was discovered that our sanction regimes were not proportionate and dissuasive enough,
“therefore what CBN did in 2018 was to come up with the anti-money laundering/administrative sanction regime which came into effect in February, 2018 and that was to put things in focus and make sure that things are working appropriately.”
Compliance Officers urged to understand digital revolution for effective performance
To perform their duties better, compliance officers have been urged to brush up their skills and be open to learning new skills that will make them more efficient in their responsibility.
According to the Chairman, Association of Chief Compliance Officers of Banks in Nigeria, (ACCOBIN), Opeyemi Adojutelgan, digital revolution needs to be understood by the compliance officers, and that’s the reason the retreat was organised.
Leading practitioners in cryptocurrency and artificial intelligence were invited to educate the Compliance officers on the digital revolution as it pertains to the banks they represent. This, he said, will ensure they are up to speed with recent global developments and remain relevant in their various organisations.
