CBN approves new rule for appointment of chief compliance officers

The Central Bank of Nigeria (CBN) has approved new requirement for the appointment of chief compliance officers (CCOs) by banks.

The apex bank in a letter titled: “Re: Status of Chief Compliance Officers,” signed by its Director, Financial Policy and Regulation Department, Kevin Amugo, said that merchant banks, regional banks (commercial and specialised) have been granted allowance to appoint CCOs on a grade not below an assistant general manager.

But the CCOs, would however report directly to the Executive Compliance Officer (ECO) of the financial institutions who has sole responsibility for compliance matters in the bank.

“Further to the circular Referenced FPR/DIR/GEN/CIR/06/004 of September 28, 2016 on the appointment of ECO and CCO of deposit money banks, the CBN has after due consideration and presentations by stakeholders on the size, structure, operation and dynamics of classes of operators in the sectors, reviewed the requirements for the appointment of chief compliance officers.

“Accordingly, merchant banks, regional banks (commercial and specialised) are hereby granted dispensation to appoint CCOs on a grade not below an assistant general manager.

“The CCOs, will however report directly to the ECO of the financial institutions who have sole responsibility for compliance matters in the bank. Meanwhile, the requirements and responsibilities of Executive Compliance Officers remain as earlier communicated in our circular of 28 September 2016.”