The Central Bank of Nigeria (CBN) has directed banks and non-bank financial institutions to provide signature mandates for financial market transactions to their Financial Markets Department (FMD).
The move by the apex bank, according to analysts is stricter regulations for banks and other financial institutions conducting transactions with its FMD.
The apex bank said in a circular signed by the Director of the Financial Market Department, Duke Omolara, with reference number: FMD/DIR/PUB/CIR/001/008 on Friday, that all banks and financial institutions are directed to provide their signature mandate for financial market transactions directly to the FMD.
The CBN further said the mandates will include approved products and transaction limits for each designated officer and within delegated authority parameters.
The Circular also provided an approved communication channel between its Financial Market Department and financial and non-financial institutions.
CBN said it has mandated all communication by email should henceforth be via authorised channels of communication.
It said that “any correspondence through a non-permissible channel will not be binding on the CBN and deemed null and void.
“The communication with the CBN shall only be processed if signed by the assigned/authorised person as communicated by an institution to the CBN.”
The apex bank added that all emails and correspondence sent through private emails and telephone calls to staff of the FMD are henceforth prohibited.
The CBN added the new rules could improve the operating efficiency through the transparency and credibility of all transactions with the Financial Market Department.
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