The Central Bank of Nigeria (CBN) has approved new requirement for the appointment of chief compliance officers (CCOs) by banks.
In a letter entitled: “Re: Status of Chief Compliance Officers,” that was signed by its Director, Financial Policy and Regulation Department,Kevin Amugo, a copy of which was posted on its website, the apex bank said that merchant banks, regional banks-commercial and specialised, have been granted allowance to appoint CCOs on a grade not below an assistant general manager.
But the CCOs, would, however, report directly to the Executive Compliance Officer (ECO) of the financial institutions who has sole responsibility for compliance matters in the bank.
“Further to the circular Referenced FPR/DIR/GEN/CIR/06/004 of September 28, 2016 on the appointment of ECO and CCO 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,’’ the letter added.
“Accordingly, merchant banks, regional banks-commercial and specialised are hereby granted dispensation to appoint CCOs on a grade not below an assistant general manager.
“The CCOs, will however report directly to the ECO of the financial institutions who have sole responsibility for compliance matters in the bank. Meanwhile, the requirements and responsibilities of Executive Compliance Officers remain as earlier communicated in our circular of 28 September 2016.
The CBN has also stated that the revised Code of Corporate Governance and Whistle blowing guidelines, issued in May 2014 and the guidelines for the development of a risk management framework for individual banks issued in July 2007, shall remain in force in the 2020/2021 fiscal years.
They shall be continually reviewed in line with best practice. As part of initiatives to strengthen financial stability and reposition the OFI sub-sector for greater effectiveness in the financial sector landscape, CBN issued the Code of Corporate Governance for Other Financial Institutions . The Code is expected to enhance good governance practices, engender public confidence to attract investments and promote efficiency and transparency in the sub-sector.
Banks shall continue to comply with the requirements of the Credit Risk Management System (CRMS).
– The Nation