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Market infractions: CBN fines 3 banks N34.1m in 6 months

The 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, checks by The Daily Times revealed.

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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