Business
CBN boss Emefiele seeks to proscribe ghost banks operating in Nigeria
Governor of The Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, is seeking the consent of the House Committee on Banking and Currency, to proscribe any bank or financial service provider without a physical presence and license to operate, by amending the Banking and Other Financial Institutions Act (BOFIA)
Emefiele who was represented by the Director, Legal Services Department, Mr. Johnson Akinwunmi at the public hearing organised by the House Committee on Banking and Currency on a bill to amend the Banking and Other Financial Institutions Act (BOFIA) and other bills in Abuja, described such institutions as an avenue to launder money, distort the banking system and poses a problem to regulatory agencies.
“We wish to propose the introduction of new subsections 3(6) and (7) for the proscription of shell banks in response to the latest recommendations of the Financial Action Task Force (FATF) on money laundering to read.
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“Any bank or its subsidiaries without physical presence in the country where it is incorporated and licensed and is not affiliated to any financial services group that is subject to effective consolidated supervision, shall not be allowed to operate in Nigeria and no Nigerian bank or its subsidiaries shall establish or continue any relationship with such bank or subsidiary.”
Similarly, the CBN is also seeking additional powers to revoke licences of banks and “power to inject funds into a failing bank by way of equity participation up to a level that guarantees control by CBN.”
The additional powers, according to the director, is to enable the CBN acquire equity investment institutions and its ability to ensure a sound financial system.
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