What Commercial Banks Did To Warrant N200 Million Fines


Nairametrics| The Central Bank of Nigeria has slammed fines worth about N200 million on three commercial banks for various infractions they committed during the 2016 financial year. The offenses, numbering 16 in total, ranged from violating regulatory guidelines on anti-money laundering/combating the financing of terrorism, rendition of reports on politically exposed persons, to failure to conduct enhanced due diligence on directors of some customer firms. Below is a full breakdown of these infractions and how much the bank was fined, as reported from Punch.

Access Bank- N49.75 million

  • Penalties on the AML/CFT examination (N24 million)
  • Risk-based supervision examination (N18 million)
  • Rendition of reports on politically exposed persons (N2 million)
  • Failure to conduct enhanced due diligence on directors of some customers’ firms (N2 million)
  • Usage of general/blanket PEP approval for a particular customer (N2 million)
  • Late submission of annual report (N1.75 million)

Guaranty Trust Bank- N62.05 million

  • Services rendered by unapproved International Money Transfer Service Operators (N50 million)
  • Un-refunded negotiable current account maintenance fees (N6 million)
  • Anti-money laundering/combating the financing of terrorism examination (N6 million)
  • Delay in rendition of returns (N50,000)

United Bank of Africa- N87.64 million

  • Customers using the ATM cards issued to other customers related to them (N48 million)
  • Failing to file timely reports on suspicious transactions of some customers (N30 million)
  • Omission of updated means of identification in customers’ files (N4 million)
  • late processing of monthly pension payments on behalf of various organizations (N2.49 million)
  • Processing payment for software license for a customer prior to the receipt of the National Office for Technology Acquisition and Promotion/Nigerian Communications Commission approved agreement (N2 million)
  • Errors in charges applied to Pension Fund Administrator accounts, which were not reversed within the agreed turnaround time (N1.15 million)

The analysis shows that UBA paid the highest amount in fines and was also responsible for the heaviest fine for a single infraction. Analysts say that although these banks ought to strengthen their compliance divisions, their sizes mean that 100% control will be near impossible. “it is not a good development for those contraventions to be happening. Measures must be taken to exert greater controls to avoid a re-occurrence in the future…The three banks involved in these 16 infractions are very big banks and, as such, it is difficult for controls to be 100 per cent. Along the line, there may be infractions that will attract regulatory sanctions.” David Adonri, Chief Executive Officer of HighCap Securities said.

Chacha Wabara

Chacha Wabara is a legal practitioner, blogger and fitness coach. She has over 5 years experience in blogging and freelance writing. She has written several articles and research work over the years as a freelance contributor. She joins Nairametrics as Our News and Analysis Lead.

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