CBN, SEC sanction GTCO, Access, others for infractions

The Central Bank of Nigeria and the Securities and Exchange Commission have sanctioned five major banks for committing over 20 various infractions, including the violation of foreign exchange market and anti-money laundering regulations.

The banks are Guaranty Trust Holding Company Plc, United Bank for Africa Plc, Access Bank Plc, Stanbic IBTC Holdings Plc and Fidelity Bank Plc.

The five lenders reported a combined fine of N1.46bn, according to the half-year 2021 financial results filed with the Securities and Exchange Commission. In line with regulatory rules, banks are required to include sanctions and fines imposed on them by regulatory agencies in their audited financial reports.

Among the five lenders, GTCO got the highest fine, running to over half a billion naira.

Specifically, the CBN fined GTCO N692m for violating its rules on certain forex transactions carried out by some betting and gaming companies. The tier-1 lender was also fined N2m 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 N273m for only two market infractions. It was fined N260m for forex documentation lapses in respect of some customers’ accounts. The regulator also asked the lender to pay N13m for non-verification of a customer identity and delay in filing the related transaction report.

The CBN and SEC imposed the sum of N233m on Stanbic IBTC Holdings in the period under the review, according to the filing. The lender was fined N230m for an alleged contravention of extant forex regulations from January 2013 to July 2020.

It was also fined N1m for administrative infractions in the Retirement Savings Account 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 a former employee.

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The CBN imposed a penalty of N2m on the bank following an alleged unfair termination of employment of a former employee, whose employment was terminated for being unable to meet the performance criteria required to confirm his employment in line with policy.”

Access Bank reported a N189.65m fine in the period under review. The CBN imposed a N100m fine on the bank in respect of failure to comply with its guidelines on Diaspora remittances.

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