Deposit Money Banks (DMBs) in Nigeria have been slammed with N6.73bn fines and penalties over alleged regulatory infractions among other defaults in the 2023 financial period.
The affected financial institutions are United Bank for Africa Plc (UBA), Stanbic IBTC, Guarantee Trust Holding Company Plc (GTCO), Fidelity Bank Plc, Zenith Bank Plc, First Bank of Nigeria Holdings Plc (FBNH) and Access Bank Holdings Plc.
An investigation into the 2023 financial statement of the lenders conducted by THE WHISTLER, reveals that some of the fines were paid to the Central Bank of Nigeria, (CBN), the Security and Exchange Commission, (SEC) and the Nigerian Exchange Group, (NGX).
The infractions ranged from violation of Retirement Savings Account registration, failure to obtain CBN prior approval before staff employment, 2023 Bank returns rendition, and late submission of fit and proper person’s test amongst others.
Some of the fines were also a result of legal awards.
UBA was the worst hit by the sanctions after paying 94.43 per cent of the total fine.
UBA paid a whooping N6.46bn penalty which was charged against the bank. However, the bank did not pay a penalty to the Central Bank of Nigeria in 2023.
Stanbic IBTC was fined N125m by the CBN, National Pension Commission (PENCOM) and SEC for different infractions.
The SEC imposed a fine of N6.78m on Stanbic IBTC Asset Management (SIAML) for failure to obtain its approval for a Privately Managed Portfolio- investment product.
PENCOM imposed a fine of N600,000 on Stanbic IBTC Pension Managers Limited, for alleged violation of RSA Registration.
PENCOM also imposed a fine of N77.64m on Stanbic IBTC Pension Managers Limited, being alleged administrative sanction for each funded RSA which was not recaptured as of 31 May 2023.
The CBN on its part fined the bank N5m for alleged failure to obtain CBN’s prior approval before staff employment.
The apex bank also imposed a fine of N35m on Stanbic IBTC Bank Limited for alleged failure to file STR/SAR to the Nigerian Financial Intelligence Unit (NFIU).
Access Bank Plc paid N81.6m fine over several infractions ranging from N10m slammed on the lender by the CBN for employment of prospective employees without its approval; N2m penalty for the delay to customers as directed by the apex bank; N15m for late rendition of monthly, quarterly and semi-annual returns for June 2023 and N6m IRO risk-based examination as of June 30, 2022.
Aside from these fines, Access Bank also paid N5m as fine on anti-money laundering, combating the financing of terrorism & countering proliferation financing.
In the same light, PENCOM fined Access Bank N2m for the use of unauthorized advert material; N200,000 for violation of the revised guidelines for retirement savings account and N39.4m for data recapture sanction.
The lender also paid N2m fine to the NGX for the late filing of 2022 Audited Financial Statements.
In 2023 GTCO, another alleged offender paid regulators N73.97m as penalties for regulatory infractions. The lender paid fines to CBN, SEC, PenCom and other parties.
In its books, the lender admitted that it paid a penalty in respect of the 2020 Risk Assets Examination to the tune of N12m.
The bank paid another N2m penalty in respect of the 2023 Consumer Protection Exercise on the Bank while N11m was paid in respect of the 2023 Bank Returns Rendition.
GTCO paid a N30m fine for the 2021-2022 AML/CT Examination on the bank while its Gambian subsidiary, GT Gambia, was fined N919,384 over the submission of Fit and Proper Person’s Test.
GT Rwanda paid N3.91m for Breach on AML reporting among others.
The report also said the company paid N2m as fine for Infraction related to the inadequacy of its minimum paid-up capital.
Fidelity Bank paid N26.26m for the NEMFS infraction to CBN; fined N4m for late returns to the apex bank; N10m as a fine for contravention of AML/CFT/CPT to CBN and N2.7m over report filing to NGX.
In total, the lender paid N42.71m for infractions.
Zenith Bank Plc paid the least fine of N21m. The amount include N5m paid to the CBN for late rendition of returns and N10m as penalty for employment of prospective employees before CBN approval.
Part of the amount also include a N2m payment for outstanding auditor’s recommendations and N4m to spot checks on compliance on politically exposed persons.
Nigeria’s oldest lender, First Bank of Nigeria Holdings paid N17m as fines and penalties during the period under review.
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