Five Banks Fined N1.4bn For Forex Infractions, Others

ACCESS bank, UBA, Fidelity and three other top banks in Nigeria have paid a total of N1.4bn as penalties to financial regulatory bodies such as  the Central Bank of Nigeria, Security Exchange Council and Financial Reporting Council of Nigeria.

The penalties were paid as a result of contraventions and infractions of guidelines instituted by the Federal Government through the Banks and Other Financial Institutions Act, relevant CBN circulars and other regulatory requirements.

In the period under review, a total sum of N692m was paid by GTB as penalties to regulators for two major infractions bordering on foreign exchange transactions carried out by Betting and Gaming Companies (N690m) and non-refund of interest on debit of non-interest related charges to non-funded accounts (N2m).

Fidelity bank paid the sum of N64.1m to the CBN during the period under review for forex trade infractions and other forex infractions, risk-based supervision between 2018 and 2019 and late returns,.

Fidelity bank was also sanctioned by SEC within the review period to the tune of N1.1m for late filing of its December 31, 2020, Audited Financial Statement.

The total sum paid for infractions by Fidelity bank in H1 2021 was N349.3m lower than the aggregate sum of N414.5m paid as penalties in H1 2020.

Access Bank was fined N184.5m by the CBN while SEC fined the bank N1m during the review period.

The violations committed by the bank include, “contravening the Central Bank’s Foreign Exchange Regulations from January 1, 2013 to July 31, 2020, contravention of rule for receiving bank, a shareholder’s complaint on dividend, CBN’s Consumer Protection report for the period of Jul 2020- Dec 2020, failure to comply with the CBN’s money laundering/combating the financing of terrorism regulations and Know Your Customer policies in respect of a customer’s account and failure to comply with Guidelines on Diaspora remittances.”

UBA incurred regulatory sanctions of N278m in H1 2021, N287m lower than the sum of N565m incurred in H1 2020.

Meanwhile, FCMB Group’s penalties rose from N150.2m paid to regulatory bodies in H1 2020 to N162.3m in H1 2021.