CBN tells financial institutions in Nigeria to promote whistle-blowing
The Central Bank of Nigeria (CBN) has asked Deposit Money Banks (DMBs) and other financial institutions in the country to develop whistle-blowing framework in their respective institutions.The Central Bank of Nigeria (CBN) has asked Deposit Money Banks (DMBs) and other financial institutions in the country to develop whistle-blowing framework in their respective institutions.
It said in a directive published on its website that the banking system relies heavily on the effective operation of a range of 'integrity systems' such as whistle-blowing for keeping institutions and their management honest and accountable.
"The objective of whistle-blowing is to encourage stakeholders to bring unethical conduct and illegal violations to the attention of an internal and or external authority so that action can be taken to resolve the problem," the CBN explained, quoted by This Day.
"This will minimise the institution's exposure to the damage that can occur when internal mechanisms are circumvented. It will also demonstrate to stakeholders that the institution is serious about adherence to codes of ethics and conduct," it added.
Compliance to the guideline will become mandatory from October 1, 2014.