The Central Bank of Nigeria has debited the accounts of three banks to the tune of N5.61bn, being the total amount of fines it imposed on them last week for alleged illegal repatriation of funds.

Last week, the regulator imposed N5.87bn fines on four banks for what it described as “flagrant violation of extant laws and regulations of the Federal Republic of Nigeria, including the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, 1995 of the Federal Republic of Nigeria and the Foreign Exchange Manual, 2006.”

The four banks are Standard Chartered Bank (N2.47bn), Stanbic IBTC Nigeria (N1.88bn), Citibank Nigeria (N1.265bn) and Diamond Bank Plc (N250m).

It also directed the banks and MTN Nigeria Communications Limited to refund to the apex bank a sum of $8,134,312,397.63, which was said to have been illegally repatriated by the company.

While Chartered Bank, Stanbic IBTC Nigeria and Citibank Nigeria had paid the fines totalling N5.06bn, according to a report by Reuters, it was not clear as of Thursday if N250m was deducted from the Diamond Bank’s account by the CBN.

“Nigeria’s central bank has debited N2.4bn ($7.9m) in fines from Standard Chartered and N1.2bn from Citigroup for allegedly helping South African telecoms firm MTN move funds abroad,” the report stated.

Stanbic IBTC also confirmed this in a statement on Thursday, saying, “Following our earlier announcement to the Nigerian Stock Exchange on 30 August, 2018, in respect of the penalty of N1.886bn imposed by the CBN on our banking subsidiary – Stanbic IBTC Bank Plc (the ‘bank’) in relation to the remittance of foreign exchange on the basis of certain capital importation certificates issued to MTN Nigeria Communications Limited, we write to update the NSE that the CBN had debited the account of our banking subsidiary with the CBN for the full amount of the above stated fine advised to the bank.

“Stanbic IBTC Holdings Plc as well as our banking subsidiary maintains our position on this matter, which is the fact that the bank has done nothing illegal and accordingly the bank will continue to provide the CBN with documents and details in support of our contention that our actions in relation to these transactions were not illegal.”

It added that the debit would not impact on its capacity to handle clients’ requests or clients’ ability to continue to carry out viable business transactions with either the bank or any member of the Stanbic IBTC Group.

“Our business transactions will continue to be handled professionally and in a manner that is aligned with Nigeria’s laws and regulatory guidelines,” it stated.

When contacted, Citi Bank declined to make any comment on the latest development.

The other banks contacted did not respond to telephone calls or messages sent to them as of the time of filling this report.

By Dotun Roy

DotunRoy.com is a development driven news website with the overall goal of amplifying, promoting and advocating for positive societal change through Sustainable Development advocacy in line with UN SDGs components such as education, environmental sustainability and Climate Change, Human Rights, health, finance, housing, good governance as well as security in Nigeria and across the world.

7 thought on “MTN Fines: CBN deducts N5.61bn from accounts of three banks”
  1. I’m not sure exactly why but this site is loading extremely slow for me.
    Is anyone else having this issue or is it a problem on my
    end? I’ll check back later on and see if the problem still exists.

  2. I just couldn’t go away your website before suggesting that I
    really enjoyed the standard information an individual provide for your
    visitors? Is going to be again regularly in order to
    check out new posts

  3. Pretty great post. I just stumbled upon your weblog and wanted to
    mention that I’ve really enjoyed surfing around your blog posts.
    After all I will be subscribing on your feed and I’m hoping you write again soon!

  4. My developer is trying to persuade me to move to .net from PHP.
    I have always disliked the idea because of the expenses. But he’s tryiong none
    the less. I’ve been using WordPress on a
    variety of websites for about a year and am concerned about switching
    to another platform. I have heard excellent things
    about blogengine.net. Is there a way I can import all my wordpress content into it?
    Any kind of help would be greatly appreciated!

Leave a Reply

Your email address will not be published.

Social Media Auto Publish Powered By : XYZScripts.com
error

Enjoy this blog? Please spread the word :)