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Bank Audit Leaders Urge CBN to Strengthen Fintech Regulations

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The Association of Chief Audit Executives of Banks in Nigeria has called for stricter regulations of the fintech space as well as the operations of the Bureaux de Change.

The association also hailed the Central Bank of Nigeria over its directive to Deposit Money Banks mandating the linking of tier-1 accounts to National Identification Number and/ or Bank Verification Number.

Prince Akamadu, the Chairman of ACAEBIN, stated this at the just concluded 57th quarterly general meeting of the association in Lagos.

In his welcome address, Akamadu said, “On our part as an association, the past three months have been eventful as would be discussed during the committees’ reports. Permit me at this juncture to acknowledge the effort of our regulators, especially the Central Bank of Nigeria on the recently released circular mandating that all Tier-1 wallets and accounts must have BVN or NIN.

“This is a landmark achievement that will significantly reduce the amount of fraud via Tier-1 accounts. ACAEBIN had been at the forefront of advocating for this piece of regulation. We shall not relent.

“ACAEBIN further recommends that the fintechs should be mandated to set up fraud desks and hotlines they could be reached when necessary. We also recommend stricter regulatory oversight on the activities of Bureaux de Change. This class of operators in the Financial Services industry must be made to verify the BVN of all customers who transact above $10,000.”

On December 1, the apex bank in a circular signed by the Director, Payments System Management Department, Chibuzo Efobi, and Director, Financial Policy and Regulation Department, Haruna Mustapha, directed a “Post no Debit” restriction on all bank accounts without a BVN and/or NIN effective April 2024.

The apex bank said the directive was part of efforts to promote financial system stability and strengthen the Know Your Customer procedures in all financial institutions.

Meanwhile, at the ACAEBIN’s quarterly general meeting, which was themed, ‘Artificial Intelligence: Game Changer for 21st Century CAEs and Auditors’, the chairman said that with the transformation going on in the world, it was important to embrace technology.

“As auditors in this rapidly changing era, it is imperative that we embrace new technologies that can enhance our abilities and revolutionise our profession. In this era of immense disruption, AI is emerging as a game-changer, propelling us into uncharted territories of efficiency, accuracy, relevance and strategic insight. AI presents us with an opportunity to unleash our true potential.”

Akamadu, however, called for caution in the use of AI, saying, “As we embrace this transformative technology, it is crucial to acknowledge the potential challenges and ethical considerations that come hand in hand.

 

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