Six commercial banks, including Diamond, First City Monument and Sterling paid N392.77 million in fines to the Central Bank of Nigeria in 2013 for contravening various aspects of Banks and Other Financial Institutions Act (BOFIA). Other penalised banks include Zenith Bank, Skye Bank and UBA.
According to the breakdown of the figures contained in the individual banks’ 2013 Annual Report, Zenith Bank paid the highest fine of N276 million for various contraventions, as it was fined for promoting top management staff without CBN approval, insufficient data for lodgment on credit report and non-rendition of original certificate of capital importation.
Sterling Bank paid N52.97 million fine for promoting management officials without CBN’s approval and foreign exchange examination infraction, among others.
UBA was fined N43.70 million for opening a branch without prior approval of CBN, improper reclassification of public sector deposits and appointment of staff without CBN approval, among others.
Diamond Bank paid N7.99 million fine for numerous infractions, which shows a fine of N2 million for the delay in refunding a customer’s $827,223 as directed by the CBN.
It was fined N4 million for promoting two senior management personnel without the approval of the CBN and was also ordered to pay N1.99 million for withholding a customer’s funds for 26 days after the promoters of the customer had written the bank that they were no longer interested in a facility.
Similarly, FCMB Group was fined N6.1 million for delayed disbursement for 20 days to the beneficiary under Commercial Agriculture Credit Scheme, among others.
Skye Bank was fined N6 million for failure to obtain CBN’s approval to promote a senior staff and under reporting of regulatory returns on public sector deposits, as well as for failure to update documentation on a customer’s account.
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