CAN THIS BE A RIGHT OPTION?
License abuse: Bill recommends imprisonment for bank directors
Bank
directors, managers and employees who abuse their operating licences
risk a minimum of two-year jail term and a fine of at least N1m.
The penalty is contained in a bill to
repeal and re-enact the Banking and Other Financial Institutions Act,
which is pending before the House of Representatives.
The new BOFIA bars directors from
tampering with depositors’ funds and provides penalties for various
fraudulent practices in the banking sector.
The BOFIA had been passed by the 6th
House, but due to lack of Presidential assent, it was reintroduced in
the current 7th House.
At a session presided over by the Deputy
Speaker, Mr. Emeka Ihedioha, on Wednesday, lawmakers endorsed clauses
one to four and part of clause five of the bill.
The portion of clause five endorsed by
the House reads, “Any person, who, being a director, manager or officer
of a bank that fails to take reasonable steps to secure compliance with
any of the conditions of the licence of the bank is guilty of an offence
and liable on conviction to a fine of at least N1m and a minimum of two
years’ jail term.”
The consideration of the contentious
BOFIA has been dragging at the House owing to allegations that the
Central Bank of Nigeria wants some sections expunged.
The sections whittle down the powers of
the CBN governor and the bank is said to have another version of the
bill that it wants the House to pass.
But the CBN has since denied that it has any intention to scuttle the bill.
Meanwhile, in an effort to hasten the
consideration of the bill, the House on Wednesday set up a 10-member ad-
hoc committee to work on the BOFIA.
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