Regulatory agencies overseeing Deposit Money Banks in Nigeria have imposed sanctions on 10 banks for breaching foreign exchange guidelines and other regulatory offenses.
These agencies, including the Central Bank of Nigeria and the Securities and Exchange Commission, levied fines totaling N1.502 billion during the first half of 2024.
These violations underscore the ongoing challenges financial institutions face in meeting compliance standards set by regulatory bodies.
The banks that received penalties include First City Monument Bank, Access Bank, Stanbic IBTC, Zenith Bank, United Bank for Africa, Guaranty Trust Bank, Sterling Bank, Fidelity Bank, First Bank, and VFD Bank.
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An analysis of the financial statements submitted to the Nigeria Exchange for the period ending June 30, 2024, revealed the amounts paid to the Central Bank of Nigeria and the Securities and Exchange Commission.
Zenith Bank incurred the highest fine at N427 million, followed by Access Bank at N300 million.
United Bank for Africa paid N279 million, while Stanbic IBTC was fined N229 million for various violations.
Other penalties included N188 million from Guaranty Trust Bank, N30.11 million from Fidelity Bank, N24.15 million from FCMB, N9 million from Sterling Bank, N8 million from First Bank, and N8.1 million from VFD Bank.
Notably, Access Bank paid N300 million to the CBN on April 30, 2024, for the improper warehousing of funds received from a government agency. Additionally, Stanbic IBTC paid N229 million in penalties to the CBN, National Pension Commission, and the Securities and Exchange Commission, an increase from the N159 million it paid in 2023.
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The statement read, “SEC imposed a penalty of N2,475,000 on Stanbic IBTC Asset Management Limited for non-submission of approval of third Supplement trust deed, Custody and Property Management agreement.
“SEC imposed a fine of N5,320,000 on Stanbic IBTC Asset Management Limited for alleged violation of the rules on fund management prohibiting fund/portfolio manager from developing and operating a product, discretionary or non-discretionary portfolio/fund without the commission’s prior approval or objection.
“The SEC imposed a fine of N1,000,000 on Stanbic IBTC Capital Limited for allegedly receiving cash inflow/credit into the Offer proceeds account after the Offer period.
“The CBN imposed a fine of N176,000,000 on Stanbic IBTC Bank Limited for alleged non-compliance with the complaints resolution directive to repay three customers.
“The CBN imposed a fine of N44,000,000 on Stanbic IBTC Bank Limited for alleged infractions noted in the CBN Risk Asset Exam December 2020 and RBS June 2022.”
Zenith Bank faced several infractions, including the delayed resolution of customer complaints, issues with reconciling customer charges, findings related to anti-money laundering, late compliance with Central Bank of Nigeria (CBN) directives, risk assessment violations, penalties for cybersecurity breaches, and checks on customer onboarding documentation.
United Bank for Africa (UBA) was fined N279 million for the late submission of the 2021 Cyber Security Self-Assessment Report and for contravening Memorandum 8 of the CBN’s Foreign Exchange Policies.
Guaranty Trust Bank (GTB) was penalized N188.25 million for violations identified during the 2023 CBN FX Examination, consumer protection regulations, compliance-related issues, and the 2024 CBN Mystery Shopping Exercise.
Additionally, GTB faced fines in Ghana and Rwanda for “breaching foreign exchange market operational guidelines,” with payments totaling N1.297 billion in Ghana and N311,000 in Rwanda.
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