Six commercial banks paid N392.77m in fines to the Central Bank of Nigeria in 2013 for contravening various aspects of the Banks and Other Financial Institutions Act.
Checks by the News Agency of Nigeria showed that the penalised banks were Diamond Bank Plc, First City Monument Bank Plc, Sterling Bank Plc, Zenith Bank Plc, Skye Bank Plc, and UBA Plc.
A breakdown of the figures contained in the individual banks’ 2013 annual reports indicated that Zenith Bank paid the highest fine of N276m for various contraventions.
The bank was fined for promoting top management staff without approval by the CBN, insufficient data for lodgement on credit report and non-rendition of original certificate of capital importation.
Sterling Bank paid N52.97m as fine for promoting management officials without CBN’s approval and for foreign exchange examination infraction, among others.
UBA was fined N43.70m for opening a branch without prior approval of the central bank, improper reclassification of public sector deposits and appointment of employees without CBN approval, among others.
Diamond Bank paid N7.99m for numerous infractions, including N2m for the delay in refunding a customer’s $827,223 as directed by the CBN and N4m for promoting two senior management personnel without the approval of the central bank.
The bank was also ordered to pay N1.99m for withholding a customer’s fund for 26 days after the promoters of the customer had written that they were no longer interested in a facility.
Similarly, the FCMB Group was fined N6.1m for delayed disbursement for 20 days to beneficiaries under the Commercial Agriculture Credit Scheme, among others.
Skye Bank was fined N6m for failure to obtain CBN’s approval to promote a senior staff and under reporting of regulatory returns on public sector deposits.
It was also fined for failure to update documentation on a customer’s account.