The Central Bank of Nigeria (CBN) has directed banks and other financial institutions (OFIs) to pay special attention to credit risk, operational risk, legal risk, liquidity risk, reputation risk and compliance with rules for combating money laundering, financing of terrorism and proliferation financing.
This comes as the Nigeria Deposit Insurance Corporation (NDIC) has advised depositors to avoid investment offers with quick and arbitrarily high returns.
Financial Institutions (FI) have the responsibility to develop and implement risk management policies and procedures for agent banking activities, the CBN said in a regulatory framework for agent banking, published on its website.
The CBN highlighted specific risk management requirements to be carried out by financial institutions. These include being responsible for monitoring and supervising the activities of their agents, having information on the numbers and volumes of transactions carried out for each type of service by each agent, and monitoring effective compliance with set limits, and establishing other prudential measures in each case.
