Deposit Money Banks (DMBs) in Nigeria faced a total of N6.73 billion in fines and penalties for various regulatory infractions during the 2023 financial period.
The penalized institutions include United Bank for Africa Plc (UBA), Stanbic IBTC, Guarantee Trust Holding Company Plc (GTCO), Fidelity Bank Plc, Zenith Bank Plc, First Bank of Nigeria Holdings Plc (FBNH), and Access Bank Holdings Plc.
An investigation by THE WHISTLER into the 2023 financial statements of these banks revealed that fines were paid to the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), and the Nigerian Exchange Group (NGX) among others. The infractions ranged from violations related to Retirement Savings Account registration, failure to obtain CBN approval before staff employment, late submission of bank returns, and late completion of fit and proper person’s tests.
UBA was the hardest hit, shouldering 94.43% of the total fines, amounting to N6.46 billion. Notably, UBA did not pay any penalty to the CBN in 2023.
Stanbic IBTC incurred a total fine of N125 million from CBN, PENCOM, and SEC for various violations. This included a N6.78 million fine from SEC for failing to obtain approval for a Privately Managed Portfolio investment product, a N600,000 fine from PENCOM for violating RSA Registration rules, a N77.64 million penalty from PENCOM for unrecaptured RSAs, and a N5 million fine from the CBN for not obtaining prior approval before staff employment. Additionally, the bank was fined N35 million by the CBN for not filing STR/SAR to the Nigerian Financial Intelligence Unit (NFIU).
Access Bank Plc was fined N81.6 million for several infractions, including a N10 million penalty from the CBN for employing prospective employees without approval, a N2 million fine for delays to customers, and a N15 million fine for late submission of returns. Access Bank also paid N5 million in fines related to anti-money laundering and combating the financing of terrorism, and a N39.4 million penalty from PENCOM for data recapture sanctions.
GTCO paid N73.97 million in fines for regulatory infractions, including penalties to CBN, SEC, PenCom, and other entities. This included N12 million for a 2020 Risk Assets Examination, N2 million for a 2023 Consumer Protection Exercise, and N30 million for a 2021-2022 AML/CT Examination. Its subsidiaries GT Gambia and GT Rwanda were also fined N919,384 and N3.91 million respectively for various breaches.
Fidelity Bank paid a total of N42.71 million in fines, including N26.26 million for NEMFS infractions to CBN, N4 million for late returns, N10 million for AML/CFT/CPT contraventions, and N2.7 million for report filing to NGX.
Zenith Bank Plc incurred the least amount of fines, totaling N21 million. This included N5 million for late returns to CBN, N10 million for employing staff without CBN approval, and N4 million for compliance checks on politically exposed persons.
First Bank of Nigeria Holdings paid N17 million in fines and penalties during the reviewed period.
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