CBN releases watchlist on financial crimes

Stories by Omodele Adigun

In order to address the rising cases of crimes in the financial system, the Central Bank of Nigeria (CBN), in collaboration with the Nigeria Inter-Bank Settlement System (NIBSS), has come up with a draft framework on local Watch-list for the banking system.
In a circular, entitled “Exposure draft of the proposed framework on watch-list for the Nigerian banking system”,  by its Director of Banking Supervision, Mrs Tokunbo Martins, the apex bank says the aim of the watch list is to “address the increasing incidence of fraud/forgeries and other unethical practices” with the aim of “engendering the needed public confidence that will ensure a safe and sound financial system”.
According to Mrs Martins, the “Watch-list is a database of bank customers identified by their Bank Verification Numbers (BVNs) who have been involved in confirmed fraudulent activities.”
On how the database will be managed, she says the “database will be hosted by NIBSS. In this regard, the attached draft framework has been developed to provide guideline for the operation of the Watch-List to manage fraud in the system.”
The draft framework lists fraudulent transactions as forgery, compromise, complicity, fraudulent duplicate enrolment and any fraudulent infraction without monetary amount involved.
It also lists “confirmed successful and unsuccessful fraud attempts within the range of N1 to N50 million and above.”
The watch-list stakeholders include CBN, Bankers’ Committee, banks/Other Financial Institutions, NIBSS , law enforcement agencies and  bank customers , with  responsibilities asigned to each.
For instance, it spells out the responsibilities of the bank to “render returns to NIBSS on individuals involved in confirmed fraudulent activities; delistindividuals from the watch-list using the watch-list report duly endorsed by the MD/CEO of the bank to delist individuals/entities after obtaining clearance from law enforcement agencies.”Other proposed roles of the banks are, Integrating the banking system to the watch list database, for online identification/verification of watch-listed individuals as transactions occur;  Enforcing the appropriate sanctions on customers as stipulated by CBN and banks to update the terms and conditions of account opening package with the following clause for new accounts and communicate the update to existing customers.
“If a potential fraud is found in the operation of your account or you are reported, you agree that we have the right to apply restrictions to your account and report to appropriate law enforcement agencies.”
As for the NIBSS, the draft stipulates that “NIBSS shall maintain the Watch-list database on behalf of stakeholders and shall be responsible for the use of the watch-list report submitted by banks to add reported fraudulent individuals to the watch-list database; Use the watch-list report submitted by banks duly endorsed by the MD/CEO of the bank with the clearance from law enforcement agency to delist individual from the watch-list database; Provide banks with a portal for the verification of watch-list individuals indicating the categories of fraud; Provide Application Programme Interface (API) for banks to integrate their systems to the watch-list database for online verification of watch-listed individual at transaction time;  Keep audit trail of all user activities on the watch-list database to be able to determine the addition of an earlier delisted individual from the database  and that NIBSS shall put in place a Service Level Agreement (SLA) with relevant stakeholders.

Arco lauds Shell, banks on $2.2bn contractor financing fund

By Cosmas Omegoh

Arco Group Plc has lauded the Memorandum of Understanding, (MoU) for a $2.2 billion contractor-financing fund recently signed with eight Nigerian banks by Shell Companies in Nigeria (SCiN) and its Joint Venture(JV) Partner, the Nigerian National Petroleum Corporation (NNPC).
The Group Managing Director of Arco, Mr. Alfred Okoigun, said his company understood that the new scheme was an improvement on the existing method of loan disbursement to vendors working with Shell companies in the country.
The fund, to be managed by the banks, is expected to provide loanable funds for Small and Medium Enterprises (SMEs) to enable them finance projects being executed for Shell companies in Nigeria.
Arco described the MoU as a far-reaching move by Shell and NNPC to improve access to credit for the Nigerian companies to enable them handle contracts for an oil major like Shell, adding that “in our 36 years in business, we have always advocated policies like this to accelerate in-country capacity growth in Nigeria.”
It noted with satisfaction that Shell had been undertaking several initiatives in recent years in order to lend credence to the Nigerian Oil and Gas Content Development Act of 2010, adding that   “for us, this is a very strong indication of Shell’s support for local content law. It is an indication by Shell to genuinely develop local capability in the country.
Arco recalled that Mr. Okoigun had commended Shell Petroleum for being active in supporting local content law in Nigeria at the oil and gas conference dinner in Abuja in March 2014, adding that examples of what the company was doing on the growth of local capacity were clear for everyone to see.
“We see this initiative by Shell as a commitment to identify with Nigeria at this critical period of recession.

We expect all the oil majors in Nigeria to emulate this giant step by Shell and NNPC because such a move is a win-win situation for all the stakeholders in the oil and gas sectorin the country.
“The indigenous SMEs in the sector would have been properly empowered to deliver on the contracts awarded to them.

The oil major would be able to make realistic forecasts on execution of its contracts. The eight banks involved will be in brisk business with minimum risks. Availability of funds for contract execution in the oil and gas industry will reduce the current financial stress being experienced in the sector. Meanwhile, more employment would have been generated and the economy should be the better for it on the long run.”
Arco enjoined all the parties to the MoU to make deliberate efforts to ensure that the initiative becomes a norm in the oil and gas business in Nigeria. It said while the banks should anchor their own side of the business according to the letters and the spirit of the MoU, it will be up to companies that will benefit from the scheme to justify the confidence reposed in them by being diligent and timely in the execution of contracts awarded to them.
In fact, the action being taken by Shell Companies in Nigeria and NNPC ought to be the template for contract execution in the oil and gas sector in Nigeria. We want the Federal Government to borrow the template of Shell to expand in-country capacity building. The beauty of this is that if one is not doing genuine business they cannot have access to this type of fund.
The company said that this type of scheme would reduce the time being spent in probes and investigations of people looting the nationís treasury through phony contracts.
ìAn initiative like this will go a long way to reduce the insecurity and tension that we continue to witness in our country because of unemployment.
ìWhile we commend Shell for this, the nation should take advantage of the move to explore ways of supporting local entrepreneurs in large numbers as China and India have been doing consistently.

Fidelity Bank targets .5m customers from promo

Fidelity Bank is leveraging on its Get In Millions Alert promo to shoot up its customer base by 500 hundred thousand new accounts, just as its winners have been presented with their prizes.
According to its Executive Director, Shared Services, Mrs Chijioke Ugochukwu, who stated this at the presentation of the prizes Tuesday in Lagos,  the  bank has leveraged on the promo like never before, adding that the Get In Millions Alert is the most successful promo of the bank so far. She said: “The new accounts we expect at the end of this promo is 500,000.

Fidelity Bank is committed to giving our customers better package. Saving is a culture developed over time. Today, the regulators, particularly the Central Bank of Nigeria, are promoting financial inclusion and savings, which Fidelity Bank has keyed into. This promo is the bank’s contribution towards creating awareness about the importance of saving in the life of everybody, both young and old”.
At the promo draw, conducted penultimate week, six customers of the bank came out as star prize winners. The winners,  selected across the nation, sinclude Mr Nse Stephen Usen of Lagos zone and Ismaila Sani Bello of Kano who won N2 million each, while the rest got N1million each.
Presenting Usen with his cheque at the bank’s headquarters in Lagos, Mrs Ugochukwu said the Get Alert in Millions promo is the 6th in the series of promo organised by the bank, “but unlike the previous ones, the promo is exclusively focusing on enriching the pockets of the customers”, she said. Winners of the consolation prizes were also presented with their gifts.
Recall that N9million cash prizes  were won by six winners at the maiden draw, while 12 others went home with  consolation prizes.
Giving reason for the promo while presenting the prizes at the first edition, its Managing Director, Mr Nnamdi Okonkwo, said the essence of the promo was to encourage saving culture as the ongoing recession might not encourage people to bank their money.
The bank chief, who spoke through the  Executive Director of the bank,in charge of Lagos and South West, Mrs Nneka Onyeali-Ikpe, said: “We are doing the promo because we want to encourage saving culture. You know things are very difficult now in the country.People need to save to get out of the economic situation.”
So we have to do something to encourage people to save more. That is why we instituted the promo to encourage saving culture.
At the presentation of prizes in Lagos, where Damilola Olufemi won two million Naira, Okonkwo said 18 winners emerged across the country with six winning between one million to three million Naira, while prizes carted award as consolation rewards included refrigerator and generating set.
ìThis is the first set of draws for this promo. We are going to have them quarterly and monthly. This is monthly draw. At Fidelity, we keep words, We intend to give out so much and everybody knows quite well what is happening in the country now . Last year, we gave out  houses in Save for Shelter promo. This year, we are giving out cash.We all know what is happening in the country. Everybody needs money now.And that is why we decided to do the ëGet Alert in Millionsëpromo. For this presentation, we have 18 winners all over the country.In Lagos, South West, South East and the North. So this presentation is going on simultaneously there,î Okonkwo added.
The 25- year who was full of praises for the bank, explained that he would put the money where it would multiply.
Also commenting on the promo, Mr.Richard Madiebo, the bankís Head of Retail, said the promo is one of the programmes put together by Fidelity Bank to make sure its customers enjoy the benefits of saving with the bank. ìWe are going to run the programme till March next yearî, he stated.

Tax professionals crucial to national devt –CITN

The President of the Chartered Institute of Taxation of Nigeria (CITN), Dr.(Mrs.) Olateju Somorin, has urged tax professionals to continually update their skills because of the critical role of taxation in national development.
Somorin, who stated this in Lagos at the institute’s 35th induction ceremony for new members, said the low tax compliance could be addressed if the federal and state governments gave autonomy to revenue administration and professionalism.
Her words: “With government’s quest to achieve  20 per cent tax to GDP ratio, it leaves no one in doubt of the legion of tax administrators and tax professionals required to navigate the tax laws on behalf of tax clients to ensure equity and fairness in its application and compliance.
“This onerous task falls on Tax Professionals who must continually update and display the requisite skill set in order to offer top notch services to their clients and the general public.
“The sharp drop in oil prices has affected the Federation Account allocations to states which have dropped by an average of about N2billion monthly per state. There have been increased activities geared towards increasing internally generated revenue with different strategies being employed.”
She then advised government to allow tax professionals head all the IRS with a view to increasing tax revenue generation and compliance. She added: “We are happy to note that some states have given effect to the Institute’s call for revenue administration autonomy in their respective states.”
In his remarks, the Registrar, Mr. Adefisayo Awogbade, disclosed that the institute has endowed a professorial chair in taxation in Babcock University in order to broaden the horizon of tax practice and administration in Nigeria.

THE ROTTEN FISH: CAN OF WORMS OPENED OF APC & TINUBU'S GOVERNMENT OVER NIGERIA'S ECONOMIC DOWNTURN

Watch this episode of ISSUES IN THE NEWS on 9News Nigeria featuring Peter Obi's Special Adviser, Dr Katch Ononuju, 9News Nigeria Publisher, Obinna Ejianya and Tinubu Support Group Leader, McHezekiah Eherechi

The economic crisis and hardship in Nigeria are parts of the discussion.

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