CBN Directs Merchant, Regional Banks To Engage Chief Compliance Officers

The Central Bank of Nigeria has directed all merchant and regional banks in the country to engage Chief Compliance Officers.

It directed the banks to appoint Chief Compliance Officers on a grade not below an Assistant General Manager.

The apex bank made the disclosure in a circular titled, ‘Status of Chief Compliance Officers,’ seen by THE WHISTLER.

The circular was signed by Kevin Amugo, Director, Financial Policy and Regulation Department

It stated, “Further to the circular Referenced FPR/DIR/GEN/CIR/06/004 of 28 September 2016 on the appointment of Executive Compliance Officers and Chief Compliance Officers of Deposit Money Banks, the CBN has after due consideration and presentations by stakeholders on the size, structure, operation and dynamics of classes of operators in the sectors, reviewed the requirements for the appointment of Chief Compliance Officers.

“Accordingly, Merchant Banks, Regional Banks (commercial and specialized) are hereby granted dispensation to appoint CCOs on a grade not below an Assistant General Manager.”

The apex bank said the Chief Compliance Officers will report directly to the Executive Director of Compliane Officers of the financial institutions who have sole responsibility for compliance matters in the bank.

Nigeria’s largest lender said the requirements and responsibilities of Executive Compliance Officers remain as earlier contained in its circular of 28 September 2016.

Based on the cited circular, the apex bank said it will hold the ECO responsible and accountable for breach of any extant regulations of banks.