CBN set N5m fine on illegal agent banking activities

THE Central Bank of Nigeria (CBN) has announced that any agent found engaging in non-permissible activities under its newly revised Agent Banking Guidelines will face a minimum penalty of N5 million for the offence and N100,000 for each day the default continues, in addition to forfeiting any profit made from such activities.

According to the revised guidelines, “Operating without a valid Super Agent licence attracts a fine of not less than N10 million and N200,000 for each day the default persists. Engaging in non-permissible agent banking activities attracts a fine of not less than N5 million and N100,000 for each day of the default. In addition, the entity shall forfeit the estimated profit.”

The CBN further stated that failure to obtain its approval or a ‘No Objection’ as stipulated in the guidelines attracts a fine of N2 million for the financial institution (FI) and for each director or senior management staff responsible for the infraction. Similarly, failure to maintain proper accounting records attracts a fine of not less than N5 million for the FI, while any officer who wilfully caused the default will pay a minimum of N2 million.

Non-permissible activities under the guidelines include: Super Agents undertaking agent banking activities; Agents offering banking services such as customer account opening, loan underwriting, investment, or forex services; Delegating permissible agent activities to another entity or individual; Using non-human or automated machines as agents; Any other activity deemed non-permissible by the CBN.