, Crypto-currency){kind=link}
|
Listen now
|
FBN Holdings the parent company of First Bank of Nigeria paid a total of N631.7 million to regulators for contravening rules relating to Foreign Exchange (FX), Crypto-currency, Consumer Protection Compliance and other regulations.
Some of the heftiest fines were levied against its subsidiary First Bank of Nigeria Limited which paid N200 million for Contravening Regulation on Crypto-currency and non-closure of affected account, according to data from its 2021 Full Year financial statement.
The bank also paid a penalty of N140 million for contravention of Extent Foreign (FX) Regulations.
FBNQuest Merchant Bank Limited another subsidiary paid N200 million to the Central Bank of Nigeria (CBN) as penalty for failure to provide examiners with the required information during an examination.
FBNQuest Merchant Bank also paid N1 million to the Security and Exchange Commission (SEC) for breach of SEC Rule 323 (17) prohibiting the transfer of net issue proceeds directly to sponsor.
Major fines paid by First Bank of Nigeria Limited in 2021
(i) The bank paid a penalty of N140 million for contravention of Extent Foreign (FX) Regulations
(ii) The bank paid a penalty of N2 million for contravention of CBN Circular Ref: FPR/DIR/GEN/CIR/06/004 Dated Sept 28, 2016
(iii) The bank paid N2 million to CBN penalty over a case of Unauthorized transactions and unjustified charges against a customer, KHALIFA
(iv) A penalty of N2 million was paid to CBN for Misappropriation of 75m Treasury Bill Investment at Keffi Branch on behalf of Achara Amechi Peter. CBN Circular CPD/MCD/CON/FB2/04/028 and Dated July 26, 2021
(v) The bank paid N2 million CBN Penalty over delay in implementing CBN Directives in prior years Consumer Protection Compliance Examinations regarding disclosures in Loan Contracts and issuance of Loan Discharge Letters.
(vi) A penalty of N2 million was paid to CBN for failure to comply with extant regulation as per circular BSD/DIR/GEN/LAB/09/028 regarding issuance of Dud Cheques by customers.
(vii) The bank paid penalty of N100 million for Contravening Regulation on Crypto-currency and non-closure of affected account
(viii) The bank paid penalty of N100 million for Contravening Regulation on Crypto-currency
(ix) The bank paid penalty of N2 million for failure to comply with extant regulations on Electronic Funds Transfer regarding beneficiary’s name enquiry confirmation prior to effecting transfer
Fines paid by FBNQuest Merchant Bank Limited
(i) N2 million to CBN for penalty on approval for the recruitment of new employees
(ii) N1 million to SEC for breach of SEC Rule 323 (17) prohibiting the transfer of net issue proceeds directly to sponsor
(iii) N50 million to CBN as penalty for misrepresentation of Board Audit Committee (BAC) meeting attendance for a Director in the 2018 Annual Report
(iv) N4 million to CBN for penalty on approval for the recruitment of two new employees
(v) N2 million to CBN as penalty for the bank’s customers who had balances below the minimum N50m
(vi) N2 million to CBN as penalty for the bank’s liquidity ratio which was below the regulatory minimum for merchant banks
(vii) N2 million to CBN as penalty for engagement of a consultant without regulatory approval
(viii) N2 million to CBN as penalty for non-compliance with CBN specification for a senior position
(ix) N200 million to CBN as penalty for failure to provide examiners with the required information during an examination
(x) N2 million to CBN as penalty for the difference between the figures in General Ledger and the Credit printout
(xi) N10 million to CBN as penalty for the contravention of the provisions of section 5.2.1 of the Code of Corporate Governance on the tenure of External Auditors and section 28 (S) 6 of the BOFIA 2020.
(xii) N2 million to CBN as penalty for the contravention of BOFIA 2020 section 47 (S) 1 and the provisions of CBN circular referenced BSD/DIR/GEN/LAB/07/004 in the engagement of company secretary without prior approval of the CBN.