LAGOS – The shareholders funds of five commercial banks dipped by N312 million in 2014, following fines they paid to Central Bank of Nigeria (CBN) for contravening the Banks and Other Financial Institutions Act.
Investigations showed that they are GT Bank, Zenith Bank, First City Monument Bank (FCMB), Access Bank and Sterling Bank.
A breakdown of the figure as contained in the banks’ annual reports showed that Access Bank paid the highest fine of N184 million for various contraventions in the period under review.
The bank was fined N184 million for not obtaining approval from CBN for the additions to investment in properties of N5.15 billion, non-compliance to implementation of the recommendations of a financial services provider, PricewaterhouseCoopers.
It was also fined for contravening the CBN’s foreign exchange manual and weaknesses noted in internal control and know your customer procedures.
A further breakdown of the fine indicated that Access Bank contravened the minimum documentation in the credit file and reporting of public sector deposit in line with CBN guidelines.
Sterling Bank followed by paying N50 million for under reporting of public sector deposits as at August 29, 2014.
Zenith Bank came third in the list of corporate offenders with a fine of N48 million for non disclosure of date of last lodgment on credit print out, appointment of a deputy general manager and incomplete reporting of all transactions of politically exposed persons.
The bank was also fined for incomplete reporting of international funds transfer, incomplete reporting of some currency transactions and misclassification of some public sector deposit among others.
Godwin Emefiele, CBN Governor
