Regulatory bodies overseeing Deposit Money Banks in Nigeria have penalized 10 banks for breaching foreign exchange rules and other regulatory requirements.
These agencies, which include the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), levied fines amounting to N1.502 billion in the first half of 2024.
The violations underscore the ongoing difficulties financial institutions face in meeting the regulatory compliance standards set by the authorities.
The penalized banks include First City Monument Bank, Access Bank, Stanbic IBTC, Zenith Bank, United Bank for Africa (UBA), Guaranty Trust Bank (GTB), Sterling Bank, Fidelity Bank, First Bank, and VFD Bank.
An analysis of the financial statements of these banks for the period ending June 30, 2024, as submitted to the Nigerian Exchange, revealed the fines paid to both the CBN and SEC.
Zenith Bank incurred the highest penalty of N427 million during the period. Access Bank followed with a payment of N300 million, while UBA paid N279 million, and Stanbic IBTC was fined N229 million.
Other banks, such as GTB, paid N188 million; Fidelity Bank paid N30.11 million; FCMB paid N24.15 million; Sterling Bank paid N9 million; First Bank was fined N8 million; and VFD Bank paid N8.1 million.
Concerns have recently been raised about the financial transparency of banks, with some civil society groups alleging that a tier-one bank’s activities lack transparency.
The President of the Arewa Consultative Movement, Alhaji Yusuf Kabir, filed a petition calling for a forensic audit of the bank’s financial records, especially given its record-breaking profit in the industry.
In response, the CBN reiterated its commitment to maintaining the stability of Nigeria’s financial sector, highlighting that routine stress tests are conducted to identify and mitigate potential risks in banks.
According to the CBN, these stress tests play a crucial role in ensuring the safety of the financial system and protecting depositors’ funds by addressing risks before they pose a threat to the sector’s stability.
A further breakdown of the fines shows that Access Bank paid N300 million to the CBN on April 30, 2024, for improperly handling funds from a government agency.
Stanbic IBTC disclosed that it paid N229 million in fines to the CBN, National Pension Commission, and SEC, an increase from the N159 million it paid in 2023.
According to their statement, “SEC imposed a fine of N2.475 million on Stanbic IBTC Asset Management Limited for failing to submit approval for the third Supplement Trust Deed, Custody, and Property Management Agreement.”
“SEC also imposed a penalty of N5.32 million on Stanbic IBTC Asset Management Limited for breaching fund management regulations, specifically operating a portfolio without prior SEC approval.”
“Additionally, the CBN fined Stanbic IBTC Bank Limited N176 million for non-compliance with a directive to repay three customers following a complaint resolution.”
Zenith Bank’s infractions included delays in resolving customer complaints, reconciliation issues, anti-money laundering breaches, delayed compliance with CBN directives, and cybersecurity violations.
UBA was penalized N279 million for late submission of its 2021 Cyber Security Self-Assessment Report and non-compliance with CBN’s foreign exchange policies.
GTB was fined N188.25 million for violations noted during the CBN’s 2023 foreign exchange examination and for non-compliance with consumer protection and other regulatory requirements. Additionally, the bank faced penalties in Ghana and Rwanda for breaching foreign exchange market guidelines, paying N1.297 billion in Ghana and N311,000 in Rwanda.
Source:- Places com ng