A collective fine of N3.2bn has been imposed on United Bank for Africa Plc, Zenith Bank Plc, Guaranty Trust Bank Plc, and Sterling Bank Plc by the Central Bank of Nigeria.
The four leading financial institution were said to have committed various kinds of regulatory infractions during the 2015 financial year.
UBA – the most affected of the quartet – was fined N2.969bn as penalty to the CBN for committing eight offences.
The offences committed by UBA are: failing to meet the Treasury Single Account reporting and remittance deadline, N2.946bn; failure to update customers’ records and conducting continuous due diligence on some accounts, N2m; and failing to review credit policy at least every three years in line with section 3.1 of the prudential guidelines 2010, N4m.
Others offences are: bidding for export proceeds in excess of the Bankers’ Committee guidance rates, N4.8m; violating the CBN circular in respect of the 2015 Risk-based Examination, N2m; and inadvertent omission of two customers from the PEP returns worth N2m.
The rest are: errors in response to an enquiry on offshore subsidiaries, N6m; and processing import transaction for a customer, pending the receipt of the customer’s renewed NAFDAC certificate.
Zenith Bank was fined the sum of N60.1m by the central bank for committing nine offences.
The offences committed by Zenith Bank are: infractions arising from risk assets examination as of December 31, 2014, N2m; late rendition of fraud and forgeries returns, N2m; fraudulent instant pay from an account in the Enterprise Bank to the Valluci Properties Limited, N10m; and late rendition of returns in respect of CDL, N4m.
Others are anti money laundering spot check exception, N4m; the TSA deadline exception, N4m; late rendition of returns, N100,000; penalty in relation to reporting of public sector deposit, N32m; and failure to implement auditors recommendation contained in a management letter.
GTBank was fined the sum of N60.05m for committing three offences – which involved delay in transmitting the list of the TSA names to the CBN, N2m; late rendition of returns, N50,000; and contravention of the CBN circular on prior clearance of prospective employees of banks, N4m.
Sterling Bank was fined N13m for committing five offences.
They are: failure of its system in preventing tiered-customers from exceeding their thresholds, N2m; not classifying customers into appropriate risk category and incomplete account opening forms, N4m; and failure of the bank to provide reports to the Nigerian Interbank Settlement System Plc as required in the circular, N1m.
Others are failure of the bank to meet the deadline for transfer of funds to the TSA, N4m; and delay in response to the CBN directive in respect of reporting lines of the Chief Compliance Officer, N2m.