ABUJA, (Sundiata Post) — The Central Bank of Nigeria (CBN) and Securities and Exchange Commission (SEC) in 2016 sanctioned Access Bank Plc, Stanbic IBTC Holdings Plc and Guaranty Trust Bank PLC (GTBank) N167.8 million for 20 different market infractions.
Of the three commercial banks, Stanbic IBTC Holdings was sanctioned for 10 infractions, amounting to N56.3million. GTBank and Access Bank were penalised N62 million and N49.5 million by CBN and SEC respectively.
The breakdown revealed that Stanbic IBTC Holdings was imposed a penalty of N125,000 by CBN for the late rendition of daily returns for October 22-30 October 2015 , December 16, 2015, April 25 , 2016 and July 27, 2016.
According to the companies’ audited annual reports obtained by our correspondent, CBN imposed a penalty of N10 million on Stanbic IBTC Holdings for concealing part of its lodgements with the Bankers Warehouse Plc and for contravening the CBN circular of August 5, 2015 which prohibited banks from accepting foreign currency cash deposit from customers.
The report on Stanbic IBTC Holdings stated that, “CBN imposed a penalty of N8million for the wrong classification of the NIBSS settlement account as a loan account, non-reporting of Government accounts, non-disclosure of insider related facilities in the returns to the CBN, approval of the acquisition, construction and installation of ATMs and cash deposit devices without the approval of the CBN.
“CBN imposed a penalty of N4million on the bank for allowing one of its export customer to receive non-export proceeds inflow into its export proceeds domiciliary account in violation of Memorandum 26(3) of the foreign exchange manual and for not surrendering some fully utilised and cancelled CCIs to the CBN within five working days from the date of cancellation in violation of Memorandum 24(5) of the foreign exchange manual.
“CBN imposed a penalty of N2 million for maintaining an account for an unlicensed money transfer operator. CBN a penalty of N6million for failure to conduct due diligence, late rendition of Suspicious Transaction Report (STRs) and opening of government accounts without the requisite approval.
“CBN imposed a penalty of N15 million for failure to carry out proper Know Your Customer Procedures, Conduct Customer Due Diligence on an on-going basis and file an STR in relation to an unlicensed money transfer operator. SEC imposed a penalty of N6.8million for failure to submit 2015 annual reports and accounts as well as 1st quarter returns on financial statements for 2016.
“SEC imposed a penalty of N1.1million for the violation of Code 1(xiii) of SEC code of conduct for Capital Market Operators and Rule 3(4) of SEC Rules and Regulation 2013 with respect to SEPLAT development company shares. SEC imposed a penalty of N3million for failure to notify SEC of name change.”
Despite the bank Anti-Money Laundering / Combating Financing of Terrorism (AML/CFT) framework, CBN sanctioned Access bank N24 million in discharge for the penalties AML/CFT examination.
The Board of Access Bank however said the bank has approved and established a robust AML/CFT programme. According to the Bank, “Board members and all levels of staff are trained at least once every financial year on AML/CFT/KYC as stated in the bank’s policy.
New employees also undergo KYC/AML/CFT training as an induction course. The Bank organizes and ensures that staff attends webinars, conferences, workshop, trainings etc as part of its bankwide AML/CFT/KYC awareness program. Tests are conducted during such trainings to ensure employees understand the content and scope of the trainings.
“All Access Bank staff sign the Annual Compliance attestation message to affirm that they have read and understood the policies and procedures of the bank relating to ethics, code of conduct, AML/CFT, Anti-bribery and corruption etc.
Also, the said it has designated a non-executive director who is responsible for the Access Bank Plc Anti Money Laundering / Combating Financing of Terrorism (AML/CFT) program.”
Access Bank was sanctioned N18 million by CBN in respect of risk-based supervision examination.
The apex banking regulating body also penalised Access Bank N6million for three violations that include, “N2 million penalties with respect to the rendition of reports on PEPS (Politically Exposed Persons); N2 million penalty for failure to Conduct Enhanced Due Diligence on directors of some customers and N2 million penalty for usage of general/blanket PEP approval for a particular customer.”
Furthermore on Access Bank, SEC penalised the bank N1.475 million for late submission of annual report.
On its part, GTBank was sanctioned N50 million in respect of services rendered by unapproved International Money Transfer Service Operators.
CBN in 2016 penalised the bank N6 million for unrefunded Negotiable Current Account Maintenance Fees and Penalty in respect of AML/CFT Examination as at April, 2016 respectively.