SEC pushes market operators for sustained compliance

The Director-General of the Securities and Exchange Commission, Dr Emomotimi Agama, has urged financial sector stakeholders to strengthen and sustain a culture of proactive compliance to safeguard Nigeria’s position in the global financial system.

The call was made at the Nigerian Capital Market Institute Compliance Summit on Monday, following the nation’s recent exit from the Financial Action Task Force greylist.

The summit, themed ‘Innovation and Compliance – Balancing Risks and Opportunities’, convened capital market operators, self-regulatory organisations, FinTech innovators, regulators, and compliance professionals to discuss risk-based, forward-looking compliance strategies.

Agama described the gathering as crucial to the future of the country’s financial markets, noting that discussions at the summit touch “the very heart of the market’s integrity, stability and future.”

He said Nigeria’s removal from the FATF Grey List was a major national achievement and a strong global endorsement of the country’s resolve to strengthen its Anti-Money Laundering and Counter-Financing of Terrorism framework.

“This was not a mere administrative update; it was a resounding global affirmation of our collective and unwavering commitment,” he said.

Crediting the success to the joint efforts of public and private sector institutions, he commended operators, regulators, and compliance professionals for their roles in achieving the milestone.

The SEC boss, however, cautioned that the exit should not be seen as the end of the journey.

“Exiting the grey list is not the finish line; it is the starting block for a new race. The world is watching,” he said.

Agama stressed that international investors and global financial institutions will continue to monitor Nigeria to determine whether the reforms are sustainable and whether the country’s compliance culture is deeply entrenched.

He said the summit’s theme underscored the need to shift from compliance driven by external pressure to a more strategic, proactive, and permanent culture of adherence to global standards.

“Robust compliance is no longer a regulatory burden; it is our single most powerful competitive advantage. A compliant market is a transparent market, and a trustworthy market is the destination for capital,” Agama asserted.

According to him, Nigeria’s strengthened compliance regime signals to the international community that the country is “open for business, safe, secure and sophisticated.”

Agama called for continuous improvement across institutions, especially through the adoption of RegTech and SupTech solutions, regular training of compliance officers, and the promotion of ethical conduct across the financial services ecosystem.

He assured stakeholders that the SEC would continue to provide strong regulatory guidance, constructive supervision, and the necessary engagement to keep Nigeria aligned with global standards.

The SEC DG urged participants at the summit to share insights and develop practical solutions that will “future-proof” the Nigerian capital market.

“Let us work together to ensure that Nigeria never again finds itself on that list,” Agama said, expressing hope that the country would instead feature among the world’s most resilient and compliant emerging markets.

In her remarks, Executive Commissioner for Legal and Enforcement at the SEC, Ms Frana Chukwuogor, said the capital market has a new law signed by the President in 2025, noting that one of the greatest challenges compliance officers and market operators face when regulations change is inadequate information on what has changed.

She said, “How can you be compliant if you don’t know what has changed? So, our focus today is to draw attention to some of the new issues, some of the new areas that may pose risks to them and the market.”

Chukwuogor said some of these issues relate to threats posed by Ponzi schemes and digital assets.

“All of you remember that this October we were removed from the grey list. So, yes, we want every participant, every capital market operator, especially the CEOs, to first know and to compel their staff, especially compliance officers, to learn the new issues that the Investment and Securities Act 2025 requires of them,” she urged.

Source: https://punchng.com/sec-pushes-market-operators-for-sustained-compliance/