Banking Updates: Recent Landmark Regulations, Legislation & Case Law Affecting The Banking & Finance Sectors June/July 2017 Edition

This newsletter contains a review of:

• The Central Bank Of Nigeria’s (“CBN’s”) exposure draft Framework for Licensing, Regulation, and Supervision of Private Asset Management Companies in Nigeria (the “Draft PAMC Framework”);

• The CBN exposure draft Framework for Bank Verification Number (“BVN”) Operations and Watch-List for the Nigerian Financial System (the “Draft BVN Operations Framework”);

• The CBN circular on unutilized Foreign Exchange (“FX”) returned to the CBN for the Secondary Market Intervention Sales (“SMIS”) wholesale and retail interventions;

• The CBN circular on statements of payment finality for the Nigerian payments schemes; and

• The CBN circular on introduction of the Nigeria Customs Service electronic auction platform.

EXPOSURE DRAFT FRAMEWORK FOR LICENSING, REGULATION, AND SUPERVISION OF PRIVATE ASSET MANAGEMENT COMPANIES IN NIGERIA

Following the decline in international commodity prices with its consequent impact on risk assets in the industry, the CBN has sought to widen the space for the management of non-performing loans through the establishment of Private Asset Management Companies (“PAMCs”). The CBN has therefore issued the Draft PAMC Framework vide its circular dated June 14, 2017 and referenced (REF: FPR/DIR/GEN/CIR/06/021) to banks and other financial institutions (“OFIs”) setting out draft rules and procedures for the establishment and operations of PAMCs in Nigeria. PAMCs will complement the role being played by the Asset Management Corporation (AMCON) in the management of non-performing assets of the industry...

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