Regulatory agencies overseeing Nigeria’s Deposit Money Banks have sanctioned 10 banks for violating foreign exchange guidelines and other regulatory offences, resulting in fines totalling ₦1.502 billion within the first half of 2024.
The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) were among the agencies responsible for imposing the penalties, which underscore the persistent compliance challenges within the banking sector.
The affected 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 their financial statements for the period ending June 30, 2024, revealed the fines paid to the CBN and SEC. Zenith Bank incurred the highest penalty of ₦427 million, followed by Access Bank with ₦300 million, and UBA with ₦279 million. Stanbic IBTC was fined ₦229 million, GTB ₦188.25 million, Fidelity Bank ₦30.11 million, FCMB ₦24.15 million, Sterling Bank ₦9 million, First Bank ₦8 million, and VFD Bank ₦8.1 million.
There have been rising concerns about the operations of banks, with some civil society groups, including the Arewa Consultative Movement, calling for a forensic audit of a major bank, alleging secrecy in its financial dealings.
In response, the CBN reaffirmed its commitment to maintaining the stability of Nigeria’s financial system. The apex bank emphasized that it conducts regular stress tests on banks to identify and mitigate potential risks before they affect the system’s overall stability.
Breaking down the fines, Access Bank was fined ₦300 million by the CBN for improperly warehousing funds from a government agency. Stanbic IBTC’s ₦229 million penalties were paid to multiple regulatory bodies, including the CBN, SEC, and the National Pension Commission, marking an increase from ₦159 million in 2023.
Further details revealed that Stanbic IBTC Asset Management faced SEC-imposed fines for non-compliance with fund management rules and delays in submitting necessary approval documents. The CBN fined Stanbic IBTC Bank for infractions related to customer complaints, cyber security breaches, and compliance failures, amounting to ₦176 million for unresolved customer issues and ₦44 million for risk assessment violations.
Zenith Bank’s infractions included delays in resolving customer complaints, anti-money laundering lapses, and non-compliance with cybersecurity regulations. UBA’s ₦279 million fine was attributed to delays in submitting cybersecurity reports and violations of foreign exchange policies. GTB’s ₦188.25 million penalty stemmed from infractions related to foreign exchange, consumer protection, and compliance issues. Additionally, the bank faced foreign exchange penalties in Ghana and Rwanda, amounting to ₦1.297 billion and ₦311,000, respectively.
Madukwe B. Nwabuisi is an accomplished journalist renown for his fearless reporting style and extensive expertise in the field. He is an investigative journalist, who has established himself as a kamikaze reporter.
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