Financial Crimes: CBN Intensifies Review of Bank’s Financial Reports to Identify Any Infractions
The Central Bank of Nigeria (CBN) has intensified its proactive monitoring of banks to detect any violations and enforce compliance with existing regulations. Recent scrutiny has been heightened due to concerns about potential involvement in financial crimes.
Recall that the Economic and Financial Crimes Commission (EFCC), noted that a significant portion of financial crimes in the country is linked to the banking sector. Financial industry insiders report that the CBN has revamped its surveillance methods to prioritize the examination of banks’ financial statements and audit reports.
According to sources, each report will undergo thorough scrutiny at multiple levels. One of the insiders suggested that the delay in the submission of audited reports and accounts by many banks for the previous year may be attributed to the meticulous examination of their financial statements.
Despite having their audited results approved and submitted to the Central Bank of Nigeria (CBN) for examination and final approval since January 2024, banks are still awaiting the apex bank’s final endorsement.
Banks are prohibited from disclosing their audited reports and accounts publicly without the CBN’s prior and definitive approval. This delay in releasing the banks’ results has led them to be in violation of corporate governance regulations at the Nigerian Exchange (NGX), where many banks are listed.
When asked about the delay in submission of their banks’ results, spokesmen for two major banks, who craved anonymity, said they were waiting for the apex bank’s approvals.
