CBN introduces appointment of ECO in banks

In its effort to enhance the minimum qualifications for the position of the Chief Compliance Officers (CCOs) of the Deposit Money Banks (DMBs), the Central Bank of Nigeria CBN) has introduced the appointment of Executive Compliance Officer (ECO).
This is to ensure strict compliance with all extant regulations; particularly those relating to foreign exchange transactions, Financial Action Task Force (FATF) and Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT).
Consequently, the CBN has directed all banks to appoint not only a CCO who must not be below the rank of a General Manager regardless of the category of institution but also an ECO who should not be below the rank of an Executive Director. going forward.
In a circular signed by Yusuf I. R, for director,  financial policy and regulation department, CBN, the CCO will report to the ECO while the ECO will in turn report directly to the Board of Directors.
The CBN said it will hold the Executive Compliance Officer responsible and accountable for any breach of any extant regulation in the DMBs.
“For avoidance of doubt, the CBN shall suspend/dismiss any ECO and CCO found wanting in the discharge of his/her responsibility”, the circular reads.
According to the circular, DMBs are required to forward the names of the ECO and CCO together with their curriculum vitae to the CBN for approval on or before October 10, 2016.
The ECOs are however allowed to combine the responsibility with other functions while the CCOs will focus only on compliance matters in the bank.