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CBN Slams N34.1m Fines on 3 Banks for Market Infractions

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Central Bank of Nigeria (CBN) has sanctioned Guaranty Trust Bank Plc (GTBank), Zenith Bank Plc and Stanbic Holdings Plc N34.1 million over different market infractions in the first six months of 2018.

 

Daily Times reported that during the period under review, the three commercial banks were involved in 14 market infractions of the CBN as GTBank was highly affected with value of sanctions between January and June of 2018.

 

GTBank was involved in two market infractions that include failing to comply with CBN 2016 foreign exchange examination findings – CBN SMIS and non-compliance with 2016 & 2017 Risk Based Examination findings.

 

The CBN sanctioned GTBank N2 million for contravening 2016 foreign exchange examination findings -CBN SMIS and N14 million for non-compliance with 2016 & 2017 Risk Based Examination.

 

The apex bank sanctioned Zenith Bank, N4 million twice for opening of branch in Dubai without CBN approval and terminating staff and additional penalty for failure to discharge within the stipulated timeframe respectively.

 

Zenith Bank was also sanctioned N2 million for application of excess charges on status enquiry. But between January and June of this year, the CBN sanctioned Stanbic IBTC Holdings, N8.1 million that involved five market infractions. Stanbic IBTC Holdings was sanctioned N2million for contravening of the CBN directive on repatriation of export proceeds.

 

Another N2 million fine was imposed on Stanbic IBTC Holdings’ banking subsidiary for issuing payment cards with validity less than three years between December 2015 and October 2016 in contravention of section 3.13 of the CBN guidelines on card issuance and usage in Nigeria dated May 2014.

 

According to information obtained by The Daily Times, Stanbic IBTC Bank contravened the provisions of section 30(8) of BOFIA 1999 as amended and CBN circular reference BSD/1/2003 dated February 25, 2003 by 37 public Sector accounts and was fined N2 million.

 

In addition, a fine of N2 million was imposed on Stanbic IBTC Bank for launching and deploying a verve prepaid debit card without prior approval of CBN in contravention of section 3.2 of the CBN guidelines on card issuance and usage in Nigeria dated May 2014.

 

Finally, the bank was sanctioned N100,000 fine on penalty fees to NOTAP for Infosys FCM implementation agreement submitted for approval more than 30 days from the effective date of agreement.


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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