Reps Approve Bill To Make Bank, Insurance, Pension Workers Declare Assets

The House of Representatives has passed for second reading, a
bill to make it compulsory for workers in the banking, insurance
and pension industries to declare their assets.

The proposed law will also bar staff members of banks and other
financial institutions from operating accounts outside the shores
of Nigeria. Their spouses and children may also be mandated to
declare their assets when a bill presently at the House becomes
law.

Also, the Secretary to the Government of the Federation would
also be stripped of the responsibility to keep records of declared
assets by Nigeria Customs Service and bank workers, and transfer it
to the relevant regulator of each industry.

The lawmaker representing Iseyin/Itesiwaju/Kajola/Iwajowa
Federal constituency in Oyo State, Mr Shina Peller, made these
proposals in the Bank Employees, Etc., (Declaration of
Assets)(Amendment) Bill 2021.

The legislation is titled ‘A Bill for an Act to Amend the Bank
Employees, Etc., (Declaration of Assets) Act CAP. B1 Laws of the
Federation of Nigeria 2004 to Reflect the Prevailing Situation in
the Country.’

Leading the debate on the bill, Peller recalled that the Bank
Employees (Declaration of Assets) Act CAP B1 Laws of the Federation
2004 was enacted on September 26, 1986, by the military regime.

He noted that the law was to make provisions for the declaration
of assets by employees of banks operating in Nigeria and to empower
the President to extend its application to other categories of
persons.

The lawmaker said the Act was aimed at monitoring the activities
of bank employees and customs officers to ensure that their
lifestyle reflects their earnings and to discourage them from
engaging in corrupt practices.

Peller said in part, “The Act applies to only employees of banks
and customs service. However, the bill seeks to extend the
application of the Act to employees of other financial institutions
which have emerged as key players in the Nigerian financial sector
over the years, i.e. pension funds agencies, insurance firms,
stocks brokers, etc.

“In the Act, it is the Secretary to the Government of the
Federation that is given the responsibility of keeping completed
forms of Assets Declaration by employees of banks and Customs
service. Then, the Secretary to the Government of the Federation
combines the functions of the present Head of Service of the
Federation and Secretary to the Government of the Federation.

“It is doubtful whether records of assets declaration were kept
as prescribed by the Act. The amendment bill seeks to transfer this
responsibility to the appropriate regulatory body of the financial
institution to which the staff concerned belongs, i.e. Central Bank
of Nigeria, for the bank employees; (National) Pension Commission
for employees of Pension Fund Administrators; Security and Exchange
Commission for stockbrokers, etc.”

He added, “It was also observed that the principal Act did not
prohibit employees of banks from having foreign accounts. This
omission may be exploited. The amendment bill expressly prohibits
employees of banks from operating foreign accounts.”

Peller noted that with the coming into effect of the 1999
Constitution, all public servants including employees of the
Nigeria Customs Service must declare their assets to the Code of
Conduct Bureau.

“It would amount to duplication of duty if employees of the
Nigerian Customs Service still declare their assets to the
Secretary to the Government of the Federation as prescribed by the
principal Act. This amendment bill addresses this anomaly by
removing the employees of the customs service from employees which
the Act applies to,” he said.

The lawmaker also stated that under the Act, it is only the
assets of bank employees concerned which shall be declared in the
form. He said the Act does not apply to the spouse and unmarried
children under 18 years of the declarant.

“This is another loophole of the Act which may be exploited. To
address this, the bill makes assets declaration by declarants to
include the assets of their spouses and unmarried children less
than 18 years old,” he said.

The Chairman of the Economic and Financial Crimes Commission,
Abdulrasheed Bawa, had earlier on March 16, 2021, said the
commission would from June 1 be demanding the asset declaration
forms of bankers.

Bawa stated that the decision was in line with the provisions of
the Bank Employees Declaration of Asset Act.

However, Deposit Money Bank workers had said the EFCC should,
instead, focus its asset declaration drive on the managing
directors of banks and other agencies of government.

Reacting to Bawa’s notice, bankers, under the aegis of National
Union of Banks, Insurance and Financial Institutions Employees,
said the EFCC should review its stance.

The House of Representatives has passed for second reading, a
bill to make it compulsory for workers in the banking, insurance
and pension industries to declare their assets.

The proposed law will also bar staff members of banks and other
financial institutions from operating accounts outside the shores
of Nigeria. Their spouses and children may also be mandated to
declare their assets when a bill presently at the House becomes
law.

Also, the Secretary to the Government of the Federation would
also be stripped of the responsibility to keep records of declared
assets by Nigeria Customs Service and bank workers, and transfer it
to the relevant regulator of each industry.

The lawmaker representing Iseyin/Itesiwaju/Kajola/Iwajowa
Federal constituency in Oyo State, Mr Shina Peller, made these
proposals in the Bank Employees, Etc., (Declaration of
Assets)(Amendment) Bill 2021.

The legislation is titled ‘A Bill for an Act to Amend the Bank
Employees, Etc., (Declaration of Assets) Act CAP. B1 Laws of the
Federation of Nigeria 2004 to Reflect the Prevailing Situation in
the Country.’

Leading the debate on the bill, Peller recalled that the Bank
Employees (Declaration of Assets) Act CAP B1 Laws of the Federation
2004 was enacted on September 26, 1986, by the military regime.

He noted that the law was to make provisions for the declaration
of assets by employees of banks operating in Nigeria and to empower
the President to extend its application to other categories of
persons.

The lawmaker said the Act was aimed at monitoring the activities
of bank employees and customs officers to ensure that their
lifestyle reflects their earnings and to discourage them from
engaging in corrupt practices.

Peller said in part, “The Act applies to only employees of banks
and customs service. However, the bill seeks to extend the
application of the Act to employees of other financial institutions
which have emerged as key players in the Nigerian financial sector
over the years, i.e. pension funds agencies, insurance firms,
stocks brokers, etc.

“In the Act, it is the Secretary to the Government of the
Federation that is given the responsibility of keeping completed
forms of Assets Declaration by employees of banks and Customs
service. Then, the Secretary to the Government of the Federation
combines the functions of the present Head of Service of the
Federation and Secretary to the Government of the Federation.

“It is doubtful whether records of assets declaration were kept
as prescribed by the Act. The amendment bill seeks to transfer this
responsibility to the appropriate regulatory body of the financial
institution to which the staff concerned belongs, i.e. Central Bank
of Nigeria, for the bank employees; (National) Pension Commission
for employees of Pension Fund Administrators; Security and Exchange
Commission for stockbrokers, etc.”

He added, “It was also observed that the principal Act did not
prohibit employees of banks from having foreign accounts. This
omission may be exploited. The amendment bill expressly prohibits
employees of banks from operating foreign accounts.”

Peller noted that with the coming into effect of the 1999
Constitution, all public servants including employees of the
Nigeria Customs Service must declare their assets to the Code of
Conduct Bureau.

“It would amount to duplication of duty if employees of the
Nigerian Customs Service still declare their assets to the
Secretary to the Government of the Federation as prescribed by the
principal Act. This amendment bill addresses this anomaly by
removing the employees of the customs service from employees which
the Act applies to,” he said.

The lawmaker also stated that under the Act, it is only the
assets of bank employees concerned which shall be declared in the
form. He said the Act does not apply to the spouse and unmarried
children under 18 years of the declarant.

“This is another loophole of the Act which may be exploited. To
address this, the bill makes assets declaration by declarants to
include the assets of their spouses and unmarried children less
than 18 years old,” he said.

The Chairman of the Economic and Financial Crimes Commission,
Abdulrasheed Bawa, had earlier on March 16, 2021, said the
commission would from June 1 be demanding the asset declaration
forms of bankers.

Bawa stated that the decision was in line with the provisions of
the Bank Employees Declaration of Asset Act.

However, Deposit Money Bank workers had said the EFCC should,
instead, focus its asset declaration drive on the managing
directors of banks and other agencies of government.

Reacting to Bawa’s notice, bankers, under the aegis of National
Union of Banks, Insurance and Financial Institutions Employees,
said the EFCC should review its stance.