CBN Tightens Financial Market Transactions With New Rules

The Central Bank of Nigeria (CBN) has implemented stricter regulations for banks and other financial institutions conducting transactions with its Financial Market Department (FMD).

The apex lender, in an internal memo with reference number: FMD/DIR/PUB/CIR/001/008 seen by THE WHISTLER on Friday, said all banks and financial institutions are directed to provide their signature mandate for financial market transactions directly to the FMD.

The circular was signed by the Director of the Financial Market Department, Duke Omolara.

The apex bank said the mandates will include the approved products and transaction limits for each designated officer and within delegated authority parameters.

The CBN also provided an approved communication channel between its Financial Market Department and financial and non-financial institutions.

CBN said it has mandated all communication by email should henceforth be via authorised channels of communication.

It said that “any correspondence through a non-permissible channel will not be binding on the CBN and deemed null and void.

“The communication with the CBN shall only be processed if signed by the assigned/authorised person as communicated by an institution to the CBN.”

The apex bank added that all emails and correspondence sent through private emails and telephone calls to staff of the FMD are henceforth prohibited.

The CBN believes the new rules could improve the operating efficiency through the transparency and credibility of all transactions with the Financial Market Department.