Central Bank of Nigeria (CBN) has barred banks and other financial institutions from recruiting new employees without first seeking and obtaining written approval from it.
The development followed the rising cases of fraud and the attendant recycling of dismissed employees in the financial services industry.
The new directive to the financial institutions, according to Mrs. Tokunbo Martins, director, Banking Supervision, CBN takes immediate effect.
The circular dated February 5 said that “We refer to our circular to all banks dated July 16, 2004 on the above subject, wherein banks were required to obtain the prior approval of the Central Bank of Nigeria for all prospective employees.
“The intendment of the above referenced circular was to prevent the recycling, within the banking Industry, of erstwhile employees indicted, terminated or dismissed for fraud and other acts of dishonesty.
The circular further stated that the new directive followed the representations made by banks during the CBN/Banks’ Human Resources forum held in last December regarding difficulties in the strict implementation of the above circular.
Martins said the management of the CBN had approved, as part of the amendments, that new employees of banks and discount houses could assume duty prior to obtaining the approval of the CBN, if this proved difficult or impractical.
However, it stated that for employees to assume duty without the CBN’s prior approval, banks and discount houses should within 30 days submit their curriculum vitae and other relevant information on the new employees to the CBN for clearance.
“Banks and discount houses shall include as part of the terms of employment (offer letter) that ‘the offer is subject to the receipt of satisfactory responses on any background checks or other inquiries on the employee from relevant authorities,” it said