A total fine of N312 million was paid as fine to Central Bank of Nigeria (CBN) by five banks for contravening the Banks and Other Financial Institutions Act.

A report by the News Agency of Nigeria (NAN) listed the banks as GTBank, Zenith Bank, First City Monument Bank (FCMB), Access Bank and Sterling Bank.

A breakdown of the figure as contained in the banks’ annual reports showed that Access Bank paid the highest fine of N184 million for various contraventions in the period under review.

The bank was fined N184 million for not obtaining approval from CBN for the additions to investment in properties of N5.15 billion, non-compliance to implementation of the recommendations of a financial services provider, PricewaterhouseCoopers.

It was also fined for contravening the CBN’s foreign exchange manual and weaknesses noted in internal control and know your customer procedures.

A further breakdown of the fine indicated that Access Bank contravened the minimum documentation in the credit file and reporting of public sector deposit in line with CBN guidelines.

Sterling Bank followed by paying N50 million for under reporting of public sector deposits as at August 29, 2014. Zenith Bank was fined N48 million for non-disclosure of date of last lodgement on credit print out, appointment of a deputy general manager and incomplete reporting of all transactions of politically exposed persons.

GTBank during the review period paid N24 million as fine for the appointment of top management without CBN’s approval and infraction arising from anti-money laundering/combating the financing of terrorism spot checks among others.

Similarly, FCMB Group was penalised N6 million for not implementing prior year’s external auditors recommendations, incorrect returns to CBN and failure to comply with ATM operation standards.

Speaking on contravention, Sunny Nwosu, national coordinator, Independent Shareholders Association, expressed concern about the various amount paid by banks for contraventions in 2014.

Nwosu said the amount would have translated to higher dividend for shareholders, noting that banks should be very careful and avoid wastage of shareholders’ funds. Nwosu said the board and management of banks should bear the cost because of their negligence and not the shareholders.

Mr Sunny Nwosu, National Coordinator, Independent Shareholders Association, expressed concern about the various amount paid by banks for contraventions in 2014.
Nwosu said the amount would have translated to higher dividend for shareholders, noting that banks should be very careful and avoid wastage of shareholders’ funds.

terzurum5:
Five banks lose N312m to CBN’s sanctions.

youngice:
i pray GTB is among

Whizpeter:


LOL

Guy you wicked ooo...

I sincerely wish the five banks are UBA, Fidelity, Enterprise, GTB and UNION

These banks tire me...

condralbede:
Hope diamond Bank n UBA is not among ooo

ziqqz:


Una still get Union Bank for that zoo country?

Whizpeter:


LOL

Guy you wicked ooo...

I sincerely wish the five banks are UBA, Fidelity, Enterprise, GTB and UNION

These banks tire me...

tunergy:

use biro write am there