The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has emphasized the importance of collaborative efforts among monetary authorities in the West African Sub-region to tackle money laundering.
Speaking at the 10th Meeting of the College of Supervisors for Non-Bank Financial Institutions (CSNBFI) in the West African Monetary Zone (WAMZ) held in Abuja, he highlighted the escalating risks posed by fintech advancements to global financial stability.
Represented by Mr. Abayomi Arogundade, Ag. Director, Other Financial Institutions Department, Mr. Cardoso stated, “We must continue to push forward the agenda of strengthening the anti-money laundering practices; deepening supervisory capacity on cybersecurity and Fintech regulation; and the implementation of risk-based supervisory approach.”
Regarding fintech loans, Mr. Cardoso remarked, “Fintech loans is one of the most commonly reported innovations. While overall this may appear small in relation to the size of credit by DMBs, some jurisdictions globally have noted a growing trend in the volume of these loans.”
He emphasized the need for vigilance in regulating digital firms, noting, “In many jurisdictions, digital firms have banking licences and are subject to prudential requirements or they may just be regulated as Fintech payment service firms.”
Mr. Cardoso urged greater cooperation among regulatory bodies within the sub-region to combat misuse of industry innovations that could harm individuals and institutions.
“Now, more than ever, the need for collaboration and cooperation amongst Member States cannot be overemphasized,” he added.
Acknowledging the critical role of Non-Bank Financial Institutions (NBFIs) or Other Financial Institutions (OFIs) in the financial ecosystem, Mr. Cardoso described them as integral to the West African Monetary Zone (WAMZ)’s strategy for financial stability and specialized financial intermediation.
He commended the progress made by the CSNBFI, particularly the development and approval of the Model Act for Non-Bank Financial Institutions and Non-Bank Financial Holding Companies of the WAMZ earlier this year.
Dr. Olorunsola Olowofeso, Director-General of the West African Monetary Institute (WAMI), underscored the resilience of member countries’ economies amid global challenges.
He highlighted the meeting’s significance in reviewing developments and addressing regulatory challenges within the non-bank financial institutions sub-sector of the WAMZ.
In concluding, Mr. Yaw Sapong, outgoing Chairman of the College, stressed the need for coordinated policy responses and enhanced regional cooperation to ensure economic stability and growth across the sub-region.