The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC)have sanctioned five banks for violating over 20 regulations including foreign exchange market and anti-money laundering regulations. The affected banks are Guaranty Trust Holding Company Plc, United Bank for Africa Plc, Access Bank Plc, Stanbic IBTC Holdings Plc, and Fidelity Bank Plc. According to the half-year 2021 financial results filed with the Securities and Exchange Commission, the five banks recorded a combined N1.4billion. Punch reported that the Guaranty Trust Holding Company Plc got the highest fine of N692 million for violating rules on certain forex transactions carried out by some betting and gaming companies. Also, the GTCO was fine N2million for non-refund interest on the debit of non-interest related charges imposed on non-funded accounts. The United Bank of Africa (UBA) was fined the sum of N273million for two market violations, the bank was fined N260 million for forex documentation lapses in respect of some customers' accounts and N13 million fine for non-verification of customer identification as well as delay in filing the related transaction report. The sum of N233 million was imposed as a fine on Stanbic IBTC Holdings for two infractions, N230 million for an alleged contravention of extant forex regulation between January 2013 to July 2020.
Also, a fine of N1 million was asked for administrative infractions in the retirement Savings Account transfer during the Q4 of 2020, while an additional N2million was imposed by the CBN following an alleged unfair termination of appointment of a former employee.
Access Bank recorded a fine of N189.65 million by the CBN and SEC. The CBN fined the Bank N100 million for non-compliance with its guidelines on Diaspora remittances. The apex bank also imposed an N80 million fine for violation of its forex regulations between January 1, 2013, and July 31, 2020.
Other Access Bank fines were N2.9 million in respect of delayed response to queries of the SEC on cases of two customers and another N2million directive on the migration of some accounts to a specified product, while the SEC fined the bank N0.5 million for breaching its rule for receiving bank.
Furthermore, the CBN asked Access Bank to pay a N0.5 million and N2million fine in respect of shareholders' complaints on dividend and consumer protection report between July to December 2020 respectively.
Access Bank was also fined N2.25million for an alleged non-compliance with CBN's Anti-Money Laundering and Counter-Terrorism Financing regulations and Know-Your Customer policies in respect of a customer's account.
Fidelity Bank was asked to pay N65.15 million for violating five market regulations.
The CBN fined Fidelity Bank N60 million for contravening forex trade regulation and N2 million as penalties for another forex infractions as well as risk-based supervision between 2018 and 2019.
SEC fine the lender N1.13 million for late filing of its December 31, 2020, audited financial statements. Also, a N25,000 fine was imposed for the late filing of its returns with the CBN.
Fidelity Bank was also fined an additional N414.5 million in the previous half-year for violating four market regulations including forex, trade, and Open Market Operations violations.
