CBN sanctions Access Bank for breaching forex, BVN directives

The Central Bank of Nigeria, CBN has fined Access Bank for wrong account opening with mismatched details, breaching foreign exchange (forex) guidelines, and one other contravention.

The apex bank also sanctioned Access Bank for breach of accounts administration agreement, Access Holdings’ 2022 financial records released on April 20 disclosed.

Breakdown of Access Bank’s contraventions showed that CBN fined the commercial bank N500 million for contravening guidelines on foreign exchange on December 8, 2022.

Access Bank was also fined N100 million for the same offence on December 8 as well as, bringing the total amount for contravening guidelines on forex to N600 million.

Also, Access Bank was hit with N2 million in respect of the wrong account opening with mismatched details on July 11, 2022.

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The financial regulator also handed Access Bank a N2 million fine as a penalty for breaching the accounts administration agreement on March 11, 2022.

Meanwhile, Access Bank suffered a N7.19 billion drop in net profit, which fell to N152.90 billion, as the company was unable to surpass the N160.09 billion profit after tax recorded in the same period in 2021.

Amid the decline in the company’s net profit, Access Bank obtained $300 million from its parent company, Access Holdings, in the face of insolvency fear in the global banking industry.

Access Holdings said the $300 million will be used to improve Access Bank’s total capital ratios and finance its African expansion. This was disclosed in a statement filed with the capital market authority, Nigerian Exchange Limited (NGX).

Also, part of the investment capital will be disbursed to improve shareholders’ funds, which gives an insight into the financial health of a company, just as total capital ratios do.

“The Investment takes the form of a Tier 1 capital qualifying Mandatory Convertible Instrument and is expected to improve the Bank’s shareholders funds and total capital ratios. The Central Bank of Nigeria has approved the Investment,” Access Holdings said.