accounts Archives - Naija Premium Gist

CBN gets court’s order to block accounts of fintech companies

August 18, 2021 No Comments

Justice Ahmed Mohammed of the Federal High Court, Abuja, on Tuesday granted the Central Bank of Nigeria (CBN)’s request to block accounts of six fintech companies for the next six months.

The firms are Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Bamboo Systems Technology Limited OPNS, Chaka Technologies Limited, CTL/Business Expenses, and Trove Technologies Limited.

The judge gave the order while ruling on a motion filed by a former Attorney-General of the Federation and Minister of Justice, Chief Micheal Aondoakaa (SAN), on behalf of the CBN Governor, Godwin Emefiele.

The apex bank approached the court to order the temporary freezing of the companies’ accounts pending the conclusion of an investigation into their financial activities.

The CBN alleged that Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Chaka Technologies Limited and Trove Technologies Limited operate in Nigeria without licenses as asset management companies and utilize forex sourced from the Nigerian foreign exchange market for purchasing foreign bonds/shares in contravention of its circular with reference No: TED/FEM/FPC/GEN/01/012 and dated July 01, 2015.

The apex bank told Justice Mohammed that the foreign exchange deals with the defendants contributed to the devaluation of the Naira, hence the need to block their accounts for 180 days.

Politics

Reps issue ultimatum to NNPC, subsidiaries over usage of unauthorised accounts

March 15, 2021 No Comments

The House of Representatives, on Sunday, March 14, issued an ultimatum to the Nigerian National Petroleum Corporation (NNPC) and its subsidiaries for an appearance before the House of Representatives Public Accounts Committee on Friday, or have a warrant of arrest issued against them.

Ripples Nigeria gathered that the NNPC and its subsidiaries were issued this ultimatum, following a query by the Auditor General of the Federation (AuGF) over dwindling revenue to the Federal Government.

Committee Chairman Oluwole Oke, who gave the directive, said the Ministries, Departments and Agencies (MDAs) of the Federal Government were operating on the Treasury Single Account (TSA), while NNPC was using its subsidiaries to operate commercial banks without the knowledge of the Accountant General of the Federation.

NNPC’s Chief Financial Officer, Umar Isa Ajiya, some weeks ago, had appeared before the committee and submitted that they were going to speak on behalf of their subsidiaries, a position the committee rejected.

The committee had said the subsidiaries were legal entities and must speak on their own.

Last week, NNPC’s Group Managing Director Mele Kyari told the lawmakers that the corporation and its subsidiaries were authorised by law to make deductions at source to fund their operations.

He had said his delay to appear before the committee was due to some exigencies.

Last Friday, Oke was enraged that the NNPC subsidiaries had not appeared before the committee and render their financial accounts, as they were expected to do, as of last week.

Consequently, he ordered the corporation and its subsidiaries to appear before the committee or a warrant of arrest be issued against them.

The lawmaker gave them seven days to appear before the committee.

Business

CBN threatens to shut accounts of operators who flout Diaspora remittance regulations

January 23, 2021 No Comments

The Central Bank of Nigeria (CBN) has threatened to shut the accounts of operators who continue to violate diaspora remittance regulations as well as withdraw their operating licences.

In a circular signed by the Director, Trade & Exchange Department of the CBN, Dr. O. S. Nnaji, on Friday, the apex bank said it would no longer tolerate the clear “contravention of its directive that all remittances be paid to beneficiaries in dollars.”

The circular which was sent to all authorised dealers and International Money Transfer Operators (IMTOs) titled ‘Modalities for payout of diaspora remittances,’ insisted that the directives were in furtherance to its earlier circular titled ‘Receipt of diaspora remittances: Additional operational guidelines’.

“These measures are intended to promote transparency, grow diaspora remittances and significantly improve foreign exchange inflows into Nigeria,” the circular reads.

“Strict sanctions, including withdrawal of operating licences, shall be imposed on any individual and/ or institutions found to be aiding, abetting or directly contravening these guidelines.”

The CBN also said it would not hesitate to close the accounts of unlicensed operators and bar them from accessing banking services in Nigeria.

“The CBN shall not hesitate to authorise the closure of their accounts in Nigerian banks, including being barred from accessing banking services in Nigeria.”

CBN also stated that only licensed IMTOs were permitted to carry on the business of facilitating diaspora remittances into Nigeria, adding that all diaspora remittances must be received by beneficiaries in foreign currency only, either in cash and/ or transfers to domiciliary accounts of recipients.

“IMTOs are not permitted, under any circumstance, to disburse diaspora remittances in Nigeria (either in cash or by electronic transfer), be it through naira remittance settlement accounts (which it had earlier directed to be closed), third party accounts or via any other payment platforms within and/or around the Nigerian financial system.”