» Five Banks Lose N312m To CBN Sanctions «

A total fine of N312 million was paid as fine
to Central Bank of Nigeria (CBN) by five
banks for contravening the Banks and Other
Financial Institutions Act.
A report by the News Agency of Nigeria
(NAN) listed the banks as GTBank, Zenith
Bank, First City Monument Bank (FCMB),
Access Bank and Sterling Bank.
A breakdown of the figure as contained in
the banks’ annual reports showed that
Access Bank paid the highest fine of N184
million for various contraventions in the
period under review.
The bank was fined N184 million for not
obtaining approval from CBN for the
additions to investment in properties of
N5.15 billion, non-compliance to
implementation of the recommendations of
a financial services provider,
PricewaterhouseCoopers.
It was also fined for contravening the CBN’s
foreign exchange manual and weaknesses
noted in internal control and know your
customer procedures.
A further breakdown of the fine indicated
that Access Bank contravened the
minimum documentation in the credit file
and reporting of public sector deposit in line
with CBN guidelines.
Sterling Bank followed by paying N50
million for under reporting of public sector
deposits as at August 29, 2014. Zenith Bank
was fined N48 million for non-disclosure of
date of last lodgement on credit print out,
appointment of a deputy general manager
and incomplete reporting of all transactions
of politically exposed persons.
GTBank during the review period paid N24
million as fine for the appointment of top
management without CBN’s approval and
infraction arising from anti-money
laundering/combating the financing of
terrorism spot checks among others.
Similarly, FCMB Group was penalised N6
million for not implementing prior year’s
external auditors recommendations,
incorrect returns to CBN and failure to
comply with ATM operation standards.
Speaking on contravention, Sunny Nwosu,
national coordinator, Independent
Shareholders Association, expressed
concern about the various amount paid by
banks for contraventions in 2014.
Nwosu said the amount would have
translated to higher dividend for
shareholders, noting that banks should be
very careful and avoid wastage of
shareholders’ funds. Nwosu said the board
and management of banks should bear the
cost because of their negligence and not the
shareholders.