Connect with us

Finance

Banks Reject Deposits From Politically Exposed Persons

Published

on

micro-finance-bank
  • Banks Reject Deposits From Politically Exposed Persons

Many commercial banks no longer accept deposits from Politically Exposed Persons (PEPs), it was leant yesterday.

A PEP, who is entrusted with a prominent public function, generally presents a higher risk for potential involvement in bribery and corruption by virtue of his position and the influence that he may hold.

Banks’ stoppage of taking hard-sought deposits from PEPs followed the rising regulatory surveillance and high risks involved with such transactions. Lenders had, in many cases, suffered huge monetary losses whenever illicit funds are traced to them.

The Group Chief Conduct and Compliance Officer of Access Bank Plc and President, Compliance Institute of Nigeria (CIN), Pattison Boleigha, who confirmed the development during a meeting with reporters in Lagos, said banks, had adopted global best practices against money laundering and corruption.

“We have placed ourselves on the pedestal of compliance. If you want to do business with international community today, you must ensure you are compliant in fighting corruption and money laundering. Each bank operates a defined structure. So, when these foreign investors come to Nigeria, they know the structure each bank has put in place,” he said.

“We want to ensure that foreign investors realise that when they come to Nigeria, it is a very good ground for professionalism. When they do that, they have the assurance that when they do business in Nigeria, they are dealing with credible organisations.”

Also speaking, a Bank Examiner with the Central Bank of Nigeria (CBN), Buhari Isa, said many banks mortgage compliance issues by setting unrealistic targets for their staff .

He said there was need to look at why bank staff bring in bad deposits into lenders’ vaults. “For example, we are talking about integrity. If you see someone that does not have integrity, there is nothing you can do about it. But you can make sure there are controls that discourage such behaviours in an organisation. For example, you can conduct research on how some staff, connive with high net-worth individuals to bring in deposits without carrying out due diligence,” he said.

Isa, who is also the Vice President of CIN, said a bank staff will provide reasons why he is conniving with a PEP to bring in huge deposits. That, he said, may arise from the bank’s dysfunctional policy.

“For example, you set unrealistic target for bank staff insisting that within the next one week such staff should bring N1 billion deposit. A PEP who collected bribe of N100 million comes to the bank staff, such target will make the staff to quickly take the money without doing proper Know Your Customer for the depositor,” he said.

In Isa’s view, addressing the high deposit target set for bank staff will help boost compliance.

Boleigha disagreed. The Access Bank Group Chief Compliance Officer spoke of the challenges faced by lenders. He said that banks do not commit crime but the people within the bank commit crime.

“The targets were not set so that people will go and commit crimes. Unfortunately, whether you like it or not, financial institutions will receive good money, and they will also receive bad money. There is really nothing you can do about it because that’s where the money should pass through. In fact, if this bad money is not kept in the banks, it will be more difficult for government authorities to track people that are committing these crimes,” he said.

To Boleigha, it is good to have all Nigerian financial transactions pass through the financial system so as to have financial record of all bad monies. He said that although bank staff have targets, that should not stop them from complying with set rules. “So, if you know that you are bringing a customer that is high risk, of course you should know, the first thing to do is to conduct a risk assessment of the customer.

There are some banks that even said they will not bank PEPs. So, if you decide you are going to bank PEPs, you must have risk management structure that will enable you manage those PEPs,” he said.

“And those risk management structures are crafted from the rules and regulations of the CBN. There are CBN’s guidelines on how to manage PEPs. If you follow the rules, it means that when bad money comes, account officers of the banks should be able to know that it is bad money.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Insurance

Heirs Insurance Group Unveils Revolutionary Website for Seamless Insurance Experience

Published

on

Heirs Life Assurance- Investors King

Heirs Insurance Group has launched a website designed to revolutionize the insurance experience for its customers.

With a focus on simplicity, accessibility, and personalized service, the new website aims to streamline the process of obtaining insurance coverage and empower customers to make informed decisions about their insurance needs.

The website boasts a range of innovative features that make navigating insurance options easier than ever before.

From simple and intuitive navigation menus to personalized insurance recommendations, the website is designed to guide customers through every step of the insurance process quickly and efficiently.

According to Ifesinachi Okpagu, the Chief Marketing Officer of Heirs Insurance Group, the new website embodies the company’s commitment to delivering exceptional customer service.

“Today’s customers want simplicity, and this new website delivers on that request,” Okpagu said. “We are empowering customers to take control of their lives, their businesses, assets, and their most cherished people.”

One of the key features of the website is its personalized insurance experience, which takes customers through a short journey to help them identify the best insurance plan for their needs.

Whether customers are looking for coverage for their home, car, business, or loved ones, the website provides tailored recommendations to ensure they find the right insurance solution quickly and easily.

With its user-friendly interface and innovative features, the new website from Heirs Insurance Group sets a new standard for the insurance industry, making it easier than ever for customers to protect what matters most to them.

Continue Reading

Banking Sector

Safaricom, Access Holdings Forge Partnership to Revolutionize Remittance Corridor in Africa

Published

on

Access bank

Safaricom, the leading telecommunications company in Kenya, has entered into a strategic partnership with Access Holdings, spearheaded by Aigboje Aig-Imoukhuede.

The collaboration aims to revolutionize the remittance corridor between East and West Africa, marking a significant step towards enhancing financial inclusion and empowering millions of individuals across the continent.

The partnership comes on the heels of Access Holdings’ recent acquisition of the National Bank of Kenya Limited, signaling the company’s ambitious expansion into the East African market.

Leveraging Safaricom’s extensive network and expertise in mobile money through M-Pesa, which currently dominates the mobile money market in Kenya, the alliance seeks to create seamless and efficient channels for remittance transactions.

Aigboje Aig-Imoukhuede, the driving force behind Access Holdings, expressed enthusiasm about the collaboration, highlighting its potential to transcend traditional boundaries and foster greater economic connectivity between East and West Africa.

He highlighted the fusion of collective expertise and resources between the two entities, underlining their shared commitment to driving financial inclusion and empowerment across the continent.

The partnership holds promise for addressing the challenges faced by millions of Africans in accessing affordable and reliable remittance services.

By connecting more than 60 million customers and 5 million businesses across eight countries, the collaboration aims to facilitate over $1 billion in daily transaction value, significantly boosting the flow of remittances within and outside Africa.

With the first phase of the collaboration focusing on key markets such as Nigeria, Kenya, Ghana, and Tanzania, stakeholders anticipate a transformative impact on the remittance landscape, paving the way for greater intracontinental trade and economic integration in line with the objectives of initiatives like the African Continental Free Trade Area (AfCFTA).

Continue Reading

Banking Sector

EFCC Urged to Repatriate Recoveries to NDIC for Depositors’ Relief

Published

on

The Nigeria Deposit Insurance Corporation (NDIC) has made a fervent plea to the Economic and Financial Crimes Commission (EFCC) to expedite the repatriation of recovered funds to its coffers to facilitate the timely reimbursement of depositors affected by bank failures.

During a recent meeting between the Managing Director of NDIC, Bello Hassan, and the Executive Chairman of the EFCC, Ola Olukoyede, at the NDIC headquarters in Abuja, Hassan stressed the importance of enhanced collaboration between the two agencies in recovering depositors’ funds lost due to bank failures.

Hassan emphasized that the return of recoveries made by the EFCC on behalf of the NDIC would significantly contribute to the prompt reimbursement of affected depositors.

He commended the EFCC for its unwavering efforts in combating corruption and financial crimes, highlighting its crucial role as a key member of the Taskforce on Implementation of the Failed Banks Act chaired by the NDIC.

The NDIC boss also highlighted the existing partnership between the two organizations, which led to the establishment of the NDIC Help Desk at the EFCC in 2022.

He disclosed that several high-profile cases referred to the EFCC were currently under investigation.

In response, Olukoyede reiterated the EFCC’s commitment to collaborating closely with the NDIC to combat financial crimes and safeguard the integrity of the Nigerian banking sector.

He pledged to intensify efforts to repatriate recovered funds promptly, acknowledging the interconnectedness between criminal activities and bank failures.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending