The Central Bank of Nigeria (CBN) said that some elements in the Securities and Exchange Commission’s (SEC) proposed Investment and Securities Bill (ISB) 2024 may be in violation of current money laundering regulations.
CBN official Tukur Galadima brought up the issue during a public meeting in Abuja on Thursday, The acble reported.
The purpose of the bill is to abolish the Investment and Securities Act of 2007, which was created by the Senate Capital Market Committee.
The term “public companies” in the SEC’s extended regulatory remit, according to Galadima, was a key problem with the proposed bill.
According to him, the proposed bill would grant the SEC complete authority over publicly traded corporations.
Galadima asserts that banks and other financial firms that fall under the central bank’s jurisdiction are examples of public enterprises.
Galadima also suggested that the committee remove section 193 of the proposed bill which permits multi-currency investment.
The member also cautioned that the bill’s provisions permitting cash purchases of securities would promote money laundering and violate the Foreign Exchange (monitoring and various provisions) Act of 1995.
However, Galadima promised that the CBN fully supports the Investment and Securities Act modification.
Alongside the SEC, he encouraged the Senate to examine its views for effective regulation.
On his part Emomotimi Agama, director-general of the SEC, in his submission, said the functions and powers of the SEC were separated and stratified in the new bill.
In his proposal, SEC Director-General Emomotimi Agama said that the new bill divided and categorized the SEC’s duties and authority.
According to Agama, the SEC will be able to maintain its signature status by registering and regulating derivatives markets, registering and regulating collateral management firms, and sanctioning unauthorized and unlawful transactions in securities and investment schemes thanks to the new functions and powers granted.
TimesNow.com.ng reported that a framework to help the Central Bank of Nigeria (CBN) in its efforts to strengthen the nation’s banking industry has been made available by the Securities and Exchange Commission (SEC).
The framework, posted on the SEC website on Friday, attempts to guarantee a seamless, open, and effective capital-raising procedure for banks and holding companies participating in the CBN’s bank recapitalization initiative.
During the 2024â2026 recapitalization phase, the framework will offer banks principles and processes for raising capital through private placements, rights issuing, and other permissible ways.
Source: TimesNow.com.ng
