Sidebar

Exclusive Reports

28
Thu, Mar

Money Laundering: CBN Sanctions Banks

Top Stories
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

Nigeria's apex bank and the Financial Reporting Council of Nigeria have sanctioned four (4) commercial banks for various infractions. It was learnt that the Central Bank of Nigeria (CBN) imposed a number of sanctions on the banks for failure to comply with its Know-Your-Customers guidelines and anti-money laundering requirements.

 

The banks which disclosed the sanctions in their audited financial statements for six months beginning from January 2019 to June noted that four banks defaulted in the new guideline.

On its part, GTBank Plc was asked to pay N10 million while the United Bank for Africa Plc and Access Bank Plc were asked to pay N8 million each.

Fidelity Bank Plc was sanctioned N4m by the regulating body.

GTBank disclosed in its audited financial statement for six months ended June 30th that it was sanctioned N2 million for anti-money laundering and combating the Financing of Terrorism regulation on three-tiered KYC and N8 million for 2018 risk-based examination findings.

The bank explained that it was committed to fighting all forms of financial crime including money laundering, terrorist financing, bribery and corruption.

It said, “To this end, the bank has continually implemented a framework for AML/CFT and the prevention of the financing and proliferation of weapons of mass destruction.”

Access Bank was sanctioned N4m over failure to comply with anti-money laundering requirement and additional N4 million in respect of failure to comply with the apex bank’s manual of operations for fund transfer.

UBA, on the other hand, was sanctioned N2 million for late resolution of customer complaints and N6 million for deficiency in account documentation and late records retrieval.

Speaking on the development, Prof Segun Ajibola, a former President and Chairman of Council, Chartered Institute of Bankers of Nigeria explained that there are sanctions that are regulatory in nature when certain specifications are given and banks are unable to meet them.

“There are penalties that are operational in nature like violating the CBN guidelines.

There are also contraventions when banks are unable to meet up lending a certain fraction of loans portfolio to the agriculture sector.

It is expected by the end of the day the CBN imposes sanctions.

He further stressed that some sanctions can be ethical in nature.

 

BLOG COMMENTS POWERED BY DISQUS