According to Vanguard, In a bid to combat money laundering and ensure financial stability in the face of growing Fintech trends, the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has called for strengthened anti-money laundering practices among monetary authorities in the West African Sub-region.
Addressing the 10th Meeting of the College of Supervisors for Non-Bank Financial Institutions (CSNBFI) in the West African Monetary Zone (WAMZ) in Abuja, Mr. Cardoso, represented by the Acting Director of the Other Financial Institutions Department, Mr. Abayomi Arogundade, emphasized the importance of enhancing supervisory capacity on cybersecurity and Fintech regulation.
"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," he stated.
He highlighted the significant financial system stability risks posed by the increasing transaction volumes of Non-Bank Financial Institutions (NBFIs) and Other Financial Institutions (OFIs).
Addressing the issue of Fintech loans, Mr. Cardoso noted, "Fintech loans are one of the most commonly reported innovations. While overall this may appear small in relation to the size of credit by Deposit Money Banks (DMBs), some jurisdictions globally have noted a growing trend in the volume of these loans."
He explained that Fintech credit is often provided through electronic platforms connecting lenders to borrowers, with these platforms sometimes acting as financial auxiliaries or new types of financial intermediaries. These platforms, typically Fintech firms, offer applications, software, and other technologies to streamline mobile and online banking.
Mr. Cardoso also mentioned that in many jurisdictions, digital firms had banking licenses and were subject to prudential requirements, or they may be regulated as Fintech payment service firms. He pointed out that innovations linked to crypto or Stablecoin assets were also reported by some jurisdictions.
The CBN Governor urged greater cooperation among regulatory bodies in the sub-region to address the exploitation of innovations in the industry that could potentially harm the public and institutions.