Regulatory challenges facing banks got tougher 2014 as the Central Bank of Nigeria (CBN) turned more punitive than corrective.
Six banks paid N318 million in penalty the CBN imposed for various offences, including flouting the Banks and Other Financial Institutions Act (BOFIA) of 2012.
The banks are GTBank, Zenith Bank, First City Monument Bank (FCMB), Access Bank, Sterling Bank, and Fidelity Bank.
Access Bank paid the highest fine of N184 million.
It was fined N184 million for not obtaining approval from the CBN for the additions to investment
in properties of N5.15 billion, and non-implementation of the recommendations of a financial services provider, PriceWaterHouseCoopers.
It was also fined for contravening foreign exchange forex) manual and weaknesses in internal control, and Know Your Customer (KYC) procedures.
Sterling Bank was fined N50 million for underreporting public sector deposits by August 29, 2014.
Zenith Bank was fined N48 million for non-disclosure of its date of last lodgment on credit print out, appointing a deputy general manager and incomplete reporting of the transactions of politically exposed persons (PEPs).
GTBank paid N24 million in fines for the appointment of top management without CBN approval and for an infraction arising from anti-money laundering/combating the financing of terrorism spot checks, among others.
FCMB was fined N6 million for not implementing the previous year’s external auditors recommendations, incorrect returns to the CBN, and failure to comply with ATM operation standards.
Fidelity Bank paid N6 million for various contraventions, including failure to notify the CBN of the position of a dismissed employee, late submission of returns through FinA stop-gap application, and not refunding un-utilised wholesale Dutch Auction System.
