Sanctions for non-compliance with filings with the Financial Reporting Council of Nigeria (FRCN).
Public interest entities are required by the FRCN to file Annual Returns, financial statements, finance returns and accounting. This requirement is in compliance with the Financial Reporting Council’s standard and the council is vested with the power to impose sanctions for non-compliance with its rules.
The sanction imposed for non-compliance is clearly stated in Section 64 provides that where a person fails to comply with the financial standard set by the council in accordance with the financial reporting council Act, that person is guilty of an offence and is liable to pay the sum of N10, 000, 000. 00(Ten Million Naira) as a fine or serve a term not exceeding 2years or both. Such a sanction becomes effective if the council brings notice of non-compliance to the persons in charge of such financial statement.
In line with the above, when a notice of non-compliance is given to the person in charge of such financial statement, he/she has 60 days within which the notice is given to restate its financial statement and resubmit same to the council and to any other government department or authority that requires same financial statement. He must also hold a general meeting of its shareholders on the restated financial statement. Failure to comply with the above makes the offender liable on conviction to a fine not exceeding N20, 000, 000.00 (Twenty Million Naira) and restate the Said financial statement within 30days thereafter.
Any professional, auditor or a person that prepares the financial statement found liable during a review by the council commits an offence and shall on conviction pay a fine not exceeding N10, 000, 000.00 (Ten Million Naira) or imprisonment for a term not exceeding 2years or both and such a person shall be delisted from the register of professionals by the council.
Where the Council reaches a final decision that a public interest entity has failed to comply with any of its decision under the Act, and with such other financial reporting, accounting, auditing and financial reporting standards as may be specified under the relevant enactments, the Council shall serve a notice on the entity for an immediate restatement of its financial statements. Where a notice is served on the public interest entity, it shall within 60days of the service of the notice, restate its financial statement and resubmit same to the council and the other relevant government department and authority.
In conclusion, any public interest entity or professional accountant or other professionals who disagree with any decision of any of the Directorates may appeal to the Council’s Technical and Oversight Committee.
The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached