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CBN, NAMB begin search for fraudulent microfinance bank operators – NAMBLAG


Lagos – The National Association of Microfinance Banks (NAMB) is working to identify fraudulent and unregistered operators in the sector, its Lagos Chapter (NAMBLAG) said on Thursday.

The Chairperson of NAMBLAG, Mrs Clara Oloniniyi, told the News Agency of Nigeria (NAN) in Lagos that the association is working with the Central Bank of Nigeria (CBN).

Oloniniyi said that the search became necessary because the nefarious activities of such operators could erode public trust in the sector.

According to her, some operators falsify or deliberately not remit their monthly financial reports to the regulatory bodies on time.

“The regulators, CBN and National Deposit Insurance Corporation (NDIC) have complained severally that some microfinance banks (MFBs) falsify or do not render returns when due.

“This is an indictment on the sector because the monthly returns must be with CBN 10 days after the month.

“The association is confident that the operators will be detected soon to face the wrath of the law,” she said.

Oloniniyi said that the fraudulent practice was common among some operators in a section of the country.

She added that genuine MFB practitioners would not watch while a few dishonour the trust built by genuine practitioners over the years.

She stressed that the association would continually inform the CBN of activities of microfinance banks suspected to be deceitful.

She added that microfinance banks that falsified accounts or gave wrong information would not be exempted.

She urged the practitioners to comply with the monthly submission of returns through the Electronic Financial Analysis and Surveillance System (eFASS) as ordered by CBN.

She said that NAMBLAG would partner Compuconsult and Associates to expand the capacities of practitioners on the submission of returns from July 1 to July 2.

She said the training would broaden practitioners’ capabilities on International Reporting Standard as ordered by Financial Reporting Council and eFASS.

She said the facilitators at the training would include officials from CBN, NDIC, the Managing Director, Lift Above Poverty, Mr Godwin Ehigiamusoe, Managing Director, ACCION Microfinance Bank, Mrs Olubummi Lawson, among others. (NAN)

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