The Central Bank of Nigeria has imposed a total fine of N3.2 billion on United Bank for Africa Plc, Zenith Bank Plc, Guaranty Trust Bank Plc and Sterling Bank Plc for violating various regulatory orders.
The offences, which were committed during the 2015 financial year, were contained in the annual reports of the affected banks.
UBA had the highest fine among the four banks, paying the sum of N2.969 billion as penalty to the CBN for committing eight offences, including failing to meet the Treasury Single Account (TSA) reporting and remittance deadline, N2.946 billion; failure to update customers’ records and conducting continuous due diligence on some accounts, N2 million; and failing to review credit policy at least every three years in line with section 3.1 of the prudential guidelines 2010, N4 million.
Others are bidding for export proceeds in excess of the Bankers’ Committee guidance rates, N4.8 million; violating the CBN circular in respect of the 2015 Risk-based Examination, N2 million; and inadvertent omission of two customers from the PEP returns, N2 million.
Others are errors in response to an enquiry on offshore subsidiaries, N6 million; and processing import transaction for a customer, pending the receipt of the customer’s renewed NAFDAC certificate.
Zenith Bank, which had the second largest fine, paid the sum of N60.1 million to the central bank for committing nine offences with Offences, including infractions arising from risk assets examination as of December 31, 2014, N2 million; late rendition of fraud and forgeries returns, N2 million; fraudulent instant pay from an account in the Enterprise Bank to the Valluci Properties Limited, N10 million; and late rendition of returns in respect of CDL, N4 million.
Others are anti money laundering spot check exception, N4 million; the TSA deadline exception, N4 million; late rendition of returns, N100,000; penalty in relation to reporting of public sector deposit, N32 million; and failure to implement auditors recommendation contained in a management letter.
The GTBank was fined N60.05 million for committing three offences in the 2015 financial year, including delay in transmitting the list of the TSA names to the CBN, N2 million; late rendition of returns, N50,000; and contravention of the CBN circular on prior clearance of prospective employees of banks, N4 million.
Sterling Bank, which had the least fine among the four banks, was fined N13m for committing five offences for committing offences such as failure of its system in preventing tiered-customers from exceeding their thresholds, N2 million; not classifying customers into appropriate risk category and incomplete account opening forms, N4 million; and failure of the bank to provide reports to the Nigerian Interbank Settlement System Plc as required in the circular, N1 million.
Others are failure of the bank to meet the deadline for transfer of funds to the TSA, N4 million; and delay in response to the CBN directive in respect of reporting lines of the Chief Compliance Officer, N2 million. [myad]