E-Financial
Forensic Firm, CBN, First Bank Clash Over Fraudulent Charge Allegations in $54.2m Facility
Lensview Consulting Services, a Lagos-based forensic and auditing firm, has alleged bias, open fraud, deliberate cover-up and impersonation of persons by the Central Bank of Nigeria (CBN) in the handling of fraudulent transaction charge refund by Nigerian money deposit banks with First Bank of Nigeria Plc (FBN) as a case in point, according to Quick News Africa report.
Mr. Henry Foss, Managing Consultant of Lensview whose client is a victim of the fraudulent charge, made the disclosure recently.
Lensview had in 2022 approached the CBN on behalf of its clients to compel FBN to refund the sum of $227,235.34, being 0.5% of $554,570.68 as the agreed Bank Guarantee Fee on a $54.2m facility its client requested from FBN. Rather than adhere to the agreed 0.5%, FBN charged Lensview’s client 1% which translated to $554,570.68, and hence the fraudulent excess charge of $227,235.34. “When FBN refused to refund the excess at the agreed rate, based on a long standing offered rate at 0.5%, Lensview had to petition the CBN on the matter and the CBN carefully reviewed the merit of the petition after which it asked FBN to refund the excess amount to the customer with accrued interest as a standing rule,” Foss said.
Instead of honouring CBN’s decision to credit the customer’s account, FBN turned around for several months to find a way to avert the decision by coming up with copy of an email chat purportedly between an FBN employee and the customer’s representative claiming that the Guarantee Fee had been increased from 0.5% to 2%, as an offer condition, which FBN claimed to have been accepted by the customer’s representative. But this unauthorised customer’s representative apparently lacked the capacity to accept such a decision on behalf of the principal nor had the customer’s mandate powers to instruct or authorise payment or drawings on the principal’s account without confirmation and necessary due diligence from the company that officially requested for the facility, with significantly, a minimum of two authorised signatures on its letterhead document for such approvals and payments.
On January 20, 2023, Lensview also wrote to the Governor of the Apex Bank, as a follow-up to the issue of fraudulent perversion, impersonation and miscarriage of Justice by the Consumer Protection Department (CPD), an arm of the CBN in a petition titled, “Reasonable Suspicion, Likelihood of Bias and Cover up By the Director of the CPD in the Appeal of Judgment between Lensview Consulting Services and the CPD with Petition Tracking Number CIM74368/AST involving First Bank Plc,” alleging that there was impersonation of its person, fraudulent neglect and non-compliance on the part of officers of the apex bank.
According to Foss, the transaction was a significantly heavy one such that FBN cannot claim lack of awareness of the fact that for any change of transaction fees to be effective, it must first be communicated to the customer with a letter with evidence of acknowledgement as a proof that the customer is aware of the change.
The forensic and audit firm also noted that FBN was aware that the said customer’s representative does not have the powers or mandate to authorise such transactions, and where he may, as a signatory with mandate powers, it will require at least two authorised signatures over the company’s letter of acceptance on their Letterhead document and not via a chat on phone between two mutual friends.
“Given the facts of the matter vis a vis the practice of banking in Nigeria, it is surprising that the CBN after its earlier verdict that refunds be credited to client, made a sudden u-turn in favour of FBN justifying the fraudulent e-mail received from customer’s staff to conclude that the e-mail suffices as an authority for FBN to take the charge based on instructions from customer’s staff without confirmation from customer’s authorised signatories,” Foss explained, questioning that if the e-mail content sufficed, why did FBN charge 1% instead 2% Guarantee Fee it stated on the email and who negotiated it from 2% to 1%? “Where is the copy of the letter from customer acknowledging the new rate which could have been negotiated or rejected if customer saw it?” Foss asks.
“More worrisome is the CBN’s lack of explanations as to why the email chat between these mutual friends on behalf of their organisations sufficed as an authority to move such a huge amount from the customer’s very busy account in the books of FBN,” Foss notes.
The CBN, in a bid to cover up this fraud, as Lensview pressed harder, in their letter dated 9/1/2023 to Lensview Consulting solicitors wrote that one Mr. Polycarp representing Lensview Consulting Services was invited in an interdepartmental meeting with representatives of the CBN in August 2022, where the said impersonator, Mr. Polycarp, affirmed and upheld the unanimous decisions with the CBN with respect to the fraudulent e-mail from FBN, as correct and sufficient to close the matter.
“This engagement of one purported Mr. Polycarp to stand in for Lensview Consulting Services in the said August 2022 meeting is another fraudulent move by the CBN to cover for FBN on the open e-mail fraud,” Foss said, adding that the CBN, in one of their recent letters to Lensview Consulting, wrote to say they have closed the matter based on the affirmation of the impostor consultant they hired to kill the matter.”
But Foss said that the CBN soon realised that it had erred by engaging an impostor consultant to stand in for Lensview in the said August 2022 meeting, and they quickly wrote back with efforts in futility to invalidate their letter dated 5/1/2023 where Mr. Polycarp the impostor was referred to.
For Lensview, this is a public call for the CBN and it’s co- traveller, FBN to do the right thing and credit the customer the excess charges it fraudulently deducted from the customer.
SOURCE: Quick News Africa
Central Bank of Nigeria (CBN) has advised bank customers to be cautious about the use of fake SWIFT messages during foreign exchange (FX) remittances.
SWIFT messages are sent through the Society for Worldwide Interbank Financial Telecommunication network to facilitate financial transactions between banks and financial institutions.
The CBN gave the warning in a statement signed by Hakama Sidi-Ali, acting director of corporate communications department, on Tuesday in Abuja.
The apex bank said it had been inundated with claims by some stakeholders about the conclusion of foreign currency transfer to their Nigeria bank accounts.
According to Sidi Ali, stakeholders like private entities, individuals, law firms, and government agencies complained that foreign currency funds allegedly transferred to them by foreign entities have yet to be credited to their accounts with Nigerian banks.
“In some instances, the claimants alleged that the funds were withheld by either the beneficiary bank in Nigeria or the CBN and requested assistance towards releasing the funds to them,” She said.
“The requests are usually supported with fake documents such as SWIFT MT103, SWIFT Ack copy, etc.
“It has become imperative to state that the SWIFT ack copy and SWIFT MT103 that these claimants usually attach as evidence of remittance to beneficiary banks in Nigeria are not reliable.”
Sidi Ali added that the SWIFT messages are always not traceable on the SWIFT platform and the funds are not received to enable their application to the beneficiary’s account.
“In a situation where a fund transfer beneficiary receiving bank claims non-receipt of funds remitted by the foreign entity, the standard practice is for the sending customer to contact the sending bank.
“The purpose for the sending bank to send a tracer to trace where the fund is hanging and recall it.
“For the avoidance of doubt, we wish to state emphatically that the CBN neither provides correspondent banking services for Nigerian banks in foreign payments nor maintains accounts for private business entities.
“Consequently, petitioners’ claim that the alleged expected inflows for onward credit into the accounts of private business entities are trapped in the CBN is not only spurious but deceitful.”
The CBN spokesperson urged the general public to be careful with such unauthentic SWIFT messages and documents containing spurious claims of non-application of substantial foreign currency funds allegedly transferred into the beneficiary’s account.
She also warned that the CBN would not hesitate to report any bank customer making unsubstantiated and illegitimate claims to law enforcement agencies for investigation and prosecution.
Federal Government is to establish a National Youth Development Bank and a Youth Data Bank, according to President Bola Tinubu.
President Bola Tinubu, represented by Kashim Shettima, his vice, , disclosed this at a Stakeholders Roundtable on Northern Youth Development organised by the Sir Ahmadu Bello Memorial Foundation, in Abuja.
The President described the banks as crucial tools for “providing financial and informational support to young Nigerians.”
He said since assumption of office, his administration unveiled a comprehensive youth development strategy spanning multiple key sectors to drive Nigeria’s economic transformation.
Tinubu extolled the legacy of the late Sardauna of Sokoto and former Premier of Northern Nigeria, Ahmadu Bello
” The late Sir Ahmadu Bello, the Sardauna of Sokoto, was one of the towering giants on whose shoulders we have ascended as a nation.
” His vision was clear: the North cannot progress in isolation, and Nigeria cannot prosper unless every part of this nation thrives,” he said.
Tinubu declared that the development of Northern Nigeria remains fundamental to the nation’s prosperity.
According to him, “whatever disrupts the growth of one region sets back the entire nation.
“For far too long, we have been taunted as a nation with the most children out of school—a reality that should not elicit pride but provoke urgent action.
“This alarming statistic has turned the promise of our population into a challenge rather than the dividend it ought to be,” he added.
In a move that signposts its market leadership, Africa’s fastest-growing financial institution, Moniepoint has been recognized as the Financially Inclusive Fintech of the Year at the 2nd International Financial Inclusion Conference (IFIC).
This prestigious event which was hosted by the Central Bank of Nigeria (CBN) had in attendance, several key stakeholders in the financial services industry that include Deputy Governor, Financial System Stability, Central Bank of Nigeria, Philip Ikeazor, Director-General, National Pension Commission (PenCom), Omolola Oloworaran, Country Manager and Area Business Head for West Africa, Mastercard, Folasade Femi-Lawal, and Chairman of Committee of e-Business Industry Heads (CeBIH), Ajibade Laolu-Adewale among others.
Themed “Inclusive Growth: Harnessing Inclusion for Economic Development,” this year’s conference brought together global experts, policymakers, and industry leaders to explore strategies for advancing financial access and fostering economic development.
Moniepoint’s stellar contributions and nationwide impact in promoting financial inclusion across underserved communities were celebrated alongside its innovative products and solutions that bridge gaps and provide a secure, fast and transparent way to access digital financial services .
In addition to this accolade, in recent weeks Moniepoint has received several other industry awards, further cementing its position as a leader in driving financial inclusion and economic empowerment across Nigeria.
Commenting on the awards and wins, CEO Moniepoint Inc, Tosin Eniolorunda said “these recognitions underscore our commitment to engineering financial happiness via solutions that empower individuals, small businesses and communities at large. At Moniepoint, we believe that financial inclusion is not just a goal but a necessary foundation for sustainable economic growth and development. We are honored to contribute and support the Federal Government’s aspirations and agenda to become a trillion dollar economy by 2030 and we remain dedicated to making a meaningful impact.”
He continued, “the laurels and accolades are a strong validation of the hard work and dedication that our DreamMakers put into powering the dreams of millions of Nigerians, and it will continue to fuel our passion for driving excellence in Nigeria’s financial services sector. It’s just Day One for us and we will continue to develop solutions that make financial services more accessible to all.”
Scoring an uncommon hattrick, Moniepoint Inc was listed for the third year in a row in the seventh edition of CB Insights annual Fintech 100, a list of the 100 most promising private fintech companies in the world and described as high-momentum companies shaping the future of financial services.
At the prestigious BusinessDay Banks & Other Financial Institutions BAFI Awards 2024, now in its 12th year, which highlights excellence and innovation within the financial services sector and celebrates the institutions that have set new standards in performance, customer service, and leadership, Moniepoint Microfinance Bank won the award for “SME Microfinance Bank of the Year” and Tosin Eniolorunda emerged as the Fintech CEO of the Year.
At the Phillips Consulting (pcl.) Digital Jurist Awards 2024, which celebrates the remarkable achievements of organizations that have exemplified innovation and excellence in leading digital transformation across various sectors in Nigeria, Moniepoint was recognised for Best Digital and Best Website in the Microfinance Bank sector, while winning the award for the Overall Best OFI in Digital Banking Solution Delivery (Vision Category) at the NEXUS 2024 Gala and Awards Night organized by Qore, a leading fintech infrastructure and Banking-as-a-Service platform provider.
Moniepoint Inc. is Africa’s all-in-one financial ecosystem, helping 10 million businesses and individuals access seamless payments, banking, credit, and business management tools since 2019. As Nigeria’s largest merchant acquirer, it powers most of the country’s Point of Sale (POS) transactions. Through its subsidiaries, Moniepoint Inc. processes $17 billion monthly for its customers while operating profitably.
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