The FCCPC Digital Moneylenders’ Registration in Nigeria
In Nigeria, digital lending has gained significant momentum in recent years due to technological innovations and increasing demand for quick access to credit. However, the growth of this sector has raised concerns regarding unethical lending practices, data privacy violations, and unprofessional recovery methods. The Federal Competition and Consumer Protection Commission (FCCPC) then introduced a regulatory framework for digital moneylenders to address these concerns and sanitise the industry. Consequently, anyone who intends to operate a digital lending business in Nigeria must register with the FCCPC.
Requirements for FCCPC Digital Moneylender’s Registration
To obtain the FCCPC digital lending license, the applying company must satisfy the requirements and go through the following processes:
- Pre-registration Requirements
Prior to the commencement of registration with the FCCPC, an Applicant is expected to obtain the certificate and license necessary to operate as a lending company in Nigeria. This may either be a license by the Central Bank of Nigeria to operate as a financial institution or a moneylender’s license obtained from a State in Nigeria.
Also, before the registration with FCCPC, the Applicant is also expected to have commenced the process of obtaining an Audit Trust mark Certificate from the Nigerian Data Protection Commission and the Compliance Audit Report and Privacy Impact Assessment Report from a duly registered Data Protection Compliance Organisation (DPCO).
- Documents Preparation, Compilation, and Filling of Application Forms
The Applicant is expected to duly complete the application forms, Form DLG 001 and Form DLG 002. There are also documentary requirements for registration with the FCCPC. These requirements include the following specific documents relating to the company’s status, structure and operations:
- Company’s Certificate of Incorporation and Status Report
- CBN License or MoneyLenders Certificate and License
- Company’s Profile and brief description of the business (and where relevant, its groups, subsidiaries and affiliates)
- Company’s Privacy Policy
- Company’s Organogram showing role players and their location
- Complaint and Feedback handling and resolution process
- Company’s Terms of Use
- Company’s Code of Conduct
- Message Template & Warning Letter
- Audit Trust Mark Certificate from the Nigerian Data Protection Commission.
- Compliance Audit Report and Privacy Impact Assessment Report from a duly registered Data Protection Compliance Organisation.
- Evidence of membership in any trade or professional associations.
- Service Level Agreements with any service providers with respect to operations, excluding administration.
- Evidence of tax payments or tax waivers, where applicable.
- Details of a person within the business who is authorized to accept all correspondence and accept service on behalf of the business
- Application Submission
After compiling the above-stated documents, the duly completed application forms and the accompanying documents will be submitted to the FCCPC through the designated channel.
- Verification and Screening
The FCCPC will review the documents and verify compliance with the guidelines. The FCCPC may also request additional information or clarification where necessary.
- Registration Approval
Upon successful evaluation, the FCCPC will issue a letter of approval to the Applicant. The lender’s details will also be published on the FCCPC website.
Conclusion
It is mandatory for all digital money lenders to comply with the FCCPC’s regulatory framework for digital money lenders. While the registration process may appear extensive, an Applicant may seek the guidance of a professional to assist with navigating the registration process, drafting necessary documents, and setting up internal policies for long-term regulatory compliance.
By the Company Secretarial and Regulatory Compliance Department of Aekley Solicitors, Nigeria.
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