Thank you for joining us for this week’s edition of Global Compliance Updates. Our aim is to keep you informed about the latest compliance developments across the globe. Our team of professionals has conducted extensive research and carefully curated the most significant news for you.
House of Representatives to Investigate Banks and Financial Institutions for Non-Compliance with Central Bank of Nigeria Directives.
The House of Representatives has announced that it will investigate banks and other financial institutions over their non-compliance with Central Bank of Nigeria (CBN) directives on Net Open Position (NOP) limits. The decision follows a motion of urgent national importance moved by Hon. Babajimi Benson on the need for banks to implement CBN policies. Benson expressed concern that commercial banks and certain financial institutions hold back a large part of forex they obtain, rather than lending to their customers, exacerbating the harsh economic situation in the country. The House resolved to mandate the House Committees on Banking Regulations and Banking Institutions to conduct an investigative hearing on the non-compliance by banks and financial institutions with CBN directives on the Net Open Position Limits.
Banking Industry Leaders Endorse CBN’s Reforms and Call for Industry-Wide Compliance.
Bank Directors Association of Nigeria (BDAN) has expressed its support for the ongoing reform initiatives of the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso. BDAN believes that the reforms are aimed at strengthening the resilience of the financial sector. In a statement, the association urged all banks to fully comply with the new directives and actively participate in the implementation process to achieve full compliance. The recent policy that banks’ Net Open Position (NOP) limit for overall foreign currency assets and liabilities should not exceed 20 per cent short or zero per cent long of shareholders’ funds, along with other prudential requirements outlined in the circular, played a critical role in ensuring the effective management of foreign currency exposures. The bank directors added that by imposing these limits, the CBN seeks to mitigate potential losses that could pose significant systemic challenges, hence, strengthening risk management, transparency, and accountability within the financial industry.
Binance Bolsters Regulatory Compliance Efforts with Steve Christie’s Return as Deputy Chief Compliance Officer.
Cryptocurrency exchange Binance has announced the return of Steve Christie as Deputy Chief Compliance Officer (DCCO), underscoring the company’s commitment to regulatory compliance. Christie, a seasoned compliance expert, previously served as Senior Vice President at Binance, where he contributed to the implementation of robust compliance measures to fortify the exchange’s adherence to evolving regulatory standards. His reintegration brings a wealth of experience and understanding of Binance’s operational intricacies, making him the ideal candidate to lead Binance’s compliance efforts amidst the evolving cryptocurrency landscape.
Christie’s appointment comes in the wake of Binance’s former Deputy Chief Compliance and Global Money Laundering Reporting Officer, Kristen Hecht’s departure. Binance aims to maintain continuity in compliance leadership while further enhancing its compliance framework to meet evolving regulatory expectations.
The cryptocurrency landscape is evolving at a rapid pace, with regulatory scrutiny intensifying across jurisdictions. Binance’s proactive stance on compliance underscores its commitment to fostering trust and transparency within the digital asset ecosystem. Christie’s reappointment augurs well for Binance’s strategic trajectory, reaffirming its position as a trailblazer in regulatory compliance within the cryptocurrency sector.
The Central Bank of Nigeria Forecasts Digital Lending to Spearhead Service Sector Growth.
CBN Governor Olayemi Cardoso has predicted that mobile money and digital lending will be the driving force behind growth in Nigeria’s service sector by 2024. Speaking at the Nigerian Economic Summit Group 2024 Macroeconomic Outlook Report launch, Cardoso stated that the services sector would continue to dominate the country’s economic growth. He projected that Nigeria’s economy would grow by 3.76% in 2024, with fintechs playing a significant role in this growth. Mobile money adoption, government partnerships, and digital lending offerings are expected to drive the growth of the fintech sector in the coming years, according to Cardoso.
Federal Government Expresses Concern Over Low Compliance Rate of Data Privacy Laws.
Nigeria is yet to achieve substantial compliance with data protection regulations and laws by private and public sectors, according to the National Commissioner and CEO of the Nigeria Data Protection Commission (NDPC), Vincent Olatunji. Despite improvements within the past two years, Olatunji noted that a lot needed to be done to achieve substantial compliance with the laws. The NDPC organized a Hackathon for young innovators and entrepreneurs from Nigeria universities to create awareness and build capacity towards the laws. The financial institutions have increased compliance to 29%, while public institutions have moved from about 5% to 9% within the past two years.
TradeStation Crypto Faces SEC Charges for Unregistered Crypto Asset Lending Product Offer and Sale.
TradeStation Crypto, Inc., a crypto lending product provider based in Plantation, Florida, has been charged by the Securities and Exchange Commission (SEC) for failing to register the offer and sale of its crypto lending product. The lending product allowed investors in the US to deposit or purchase crypto assets in a TradeStation account in exchange for interest payments. TradeStation has agreed to pay a $1.5 million penalty to settle the SEC’s charges. The SEC found that TradeStation offered and sold the product as a security, but failed to register the offer and sale. TradeStation voluntarily stopped offering the interest feature to investors on June 30, 2022, and plans to terminate all its crypto-related products and services in the US market on February 22, 2024.
Kuwaiti Forex Brokerage Firm Found Guilty of Regulatory Violations by CMA.
The Capital Markets Authority (CMA) in Kuwait has uncovered significant regulatory violations by a foreign exchange brokerage firm, citing operational insufficiencies. The CMA’s investigation revealed discrepancies between customer transaction records and accounts, and financial misconduct by the firm, which failed to reconcile these records. The CMA’s action aims to restore investor confidence and promote transparency in accordance with international standards. The firm’s violation serves as a reminder for other companies to maintain operational integrity and adhere to CMA’s regulatory standards.
We hope you found the latest compliance developments informative and useful. We are committed to providing you with the most relevant news.
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Last modified: March 27, 2024
