The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have sanctioned five major banks for violating foreign exchange guidelines and anti-money laundering regulations, among others.
The affected banks include Guaranty Trust Holding Company Plc (GTCo), United Bank for Africa Plc (UBA), Access Bank Plc, Stanbic IBTC Holdings Plc and Fidelity Bank Plc.
According to the half-year 2021 financial results filed with the SEC, the five banks paid a total fine of N1.46billion for the infractions.
In line with regulatory rules, banks are required to include sanctions and fine imposed on them by regulatory agencies in their audited financial reports.
Among the five lenders, GTCO paid the highest fine.
Specifically, the CBN fined GTCO N692million for violating its rules on certain forex transactions carried out by some betting and gaming companies.
The tier-1 lender was also fined N2million for non-refund of interest on debit of non-interest-related charges imposed on non-funded accounts.
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UBA was fined the sum of N273 million for only two market infractions – N260million for forex documentation lapses in respect of some customers’ accounts and N13 million for non-verification of a customer’s identity and delay in filing the related transaction report.
The CBN and SEC imposed the sum of N233 million on Stanbic IBTC Holdings in the period under the review, according to the filing.
The lender was fined N230 million for an alleged contravention of extant forex regulations from January 2013 to July 2020.
It was also fined N1 million for administrative infractions in the Retirement Savings Account (RSA) transfer during the fourth quarter of 2020.
Stanbic IBTC, in its audited half-year ended June 30, 2021 results, said, “Penalty imposed by the CBN following an alleged unfair termination of employment of former employee.”
Access Bank reported N189.65 million fine in the period under review.
The CBN imposed N100 million fine on the bank in respect of failure to comply with its guidelines on Diaspora remittances.
