CBN sets standard for banks on compliance officers

CBN moves to regulate Open Banking in Nigeria

The Central Bank of Nigeria (CBN) has given a directive to merchant banks and regional banks to appoint chief compliance officers  (CCO) on a grade not below an assistant general manager.

It said this in an administrative letter to all merchant and regional banks (commercial/specialised) which was signed by Kelvin Amugo, the director, financial policy and regulation department, titled ‘Status of chief compliance officers’.

The circular read, “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 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.”