CBN Imposes N655m Sanctions On Two Banks In H1

The Central Bank of Nigeria (CBN) has sanctioned two frontline banks a sum of N655 million for various market infractions in the first half of 2024.

From both banks’ audited results and accounts for half year ended June 30, 2024, one was sanctioned N228 million for the first time for failure to disclose the breakdown of its market infractions in the period under review.

For the Tier-1 bank that was also affected, a total penalty of N427 million was imposed as of June 2024, for its failure to comply with seven guidelines and regulations of the CBN.

The breakdown of the N427 million from the H1 2024 result and accounts revealed that the Tier-1 bank was sanctioned N322 million for not checking on customers onboarding documentation, one of the highest in the history of the bank.

Also, it was sanctioned N61 million for anti-money laundering and N20 million for late compliance with CBN directives.

The bank, one of the most profitable in Nigeria was sanctioned N14 million for failing to reconcile customer charges; N2 million for late resolution of customer’s complaint; N4 million for risk assessment infraction and penalty for cyber security breaches, each.

The penalty on the Tier-1 bank in 2023 financial year was the first time in so many years and it happened after the ouster of the former CBN Governor, Godwin Emefiele.

During Emefiele’s years as CBN, the lender in its result and accounts did not report any market infractions, according to the INSIDEBUSINESS investigation.

The second bank a Tier 2  was sanctioned N125.02 million in 2023 from N159 million in the 2022 financial year.

The breakdown of the sanctions includes, Securities & Exchange Commission (SEC) imposed sanction of N6.775,453.87 on Stanbic IBTC Asset Management (SIAML) for failure to obtain Commission approval for an investment product – Privately Managed Portfolio.

According to the 2023 reports, PENCOM imposed a fine of N600,000 on its Pension subsidiary being administrative sanction on alleged violation of RSA Registration; and another fine of N77,645,700 on the pension subsidiary as administrative sanction for alleged each funded RSA yet to be recaptured as of May 31, 2023; while the CBN imposed a fine of N5,000,000 on the Bank, the parent company Limited for alleged failure to obtain CBN prior approval before staff employment.