The Central Bank of Nigeria (CBN) has sanctioned GTBank, United Bank of Africa and Zenith N175 million for contraventions in the year 2019, Business Remarks has gathered.
The banks disclosed the sanctions in their 2019 audited financial statements to Nigeria Stock Exchange (NSE).
Business Remarks learnt that the Apex Bank punished the banks for failing to comply with some of its regulations amd laid down conditions.
Investigations carried out by our correspondent revealed that GTBank was sanctioned N85million while United Bank sanctioned N69million and
Zenith Bank got N21 million as sanction for contraventions from the industry regulator.
According to CBN, GTBank was asked to pay N46million as penalty for failure to comply with regulatory directive, N24million penalty for allowing BDC operate without BVN, N10 million for falling short on 2018 Risk Based Examination findings, N2 million for AML/CFT regulation on three tiered KVC and N2million for failure to reverse debit interest.
The sum of which amount N85 million, the highest of all CBN’s fine for Nigeria banks in the year 2019.
UBA, on the other hand, during the period under consideration was sanctioned N23million for penalty on incomplete documentation/BVN on certain accounts, N36million penalty for customers accounts that contravened CBN regulation, N6million penalty on late resolution of customer complaints/citing of offside ATM and N4million on penalty on late repatriation of funds.
The Apex Bank also punished Zenith Bank N15million as penalty for improper classifications of corporate accounts, N2million penalty for incomplete documentation of newly opened accounts, N2million fines for non compliance with ATM installation procedures and N2million fines for non compliance Anti-money laundering procedures in 2019.
Recall that the former President/Chairman of Council, Chartered Institute of Bankers of Nigeria, Prof Segun Ajibola stated last year that, “there are some sanctions that can be ethical in nature. It might involve banks involved in round-tripping foreign exchange – that is unethical practice. A bank that decided to accommodate AML/CFT without conducting due diligent has ethical issues”.
According to the apex bank, the objective of the some regulations is to fully align with the core objectives of the National Payments System Vision 2020 to ensure the availability of safe, effective and efficient mechanisms for conveniently making and receiving all types of payments from any location and at any time, through multiple electronic channels.