How CBN sanctions gulped N669.48m from Sterling Bank, Fidelity Bank,

ADEBAYO TEMITOPE

Due to non-compliance with risk-based examination findings, and few other banking operations guidelines, the Central Bank of Nigeria (CBN) has penalized Sterling Bank Plc, Fidelity Bank Plc and Union Bank of Nigeria Plc N669.48million between 2018 and 2020.

The central bank sanctioned the above banks’ failure to comply with risk-based examination findings, penalty for AML/CFT risk-based examination, Non-adherence to CBN guidelines on ATM operations and failure to comply with foreign exchange policies.

Of the three banks, Fidelity Bank, followed by Union Bank of Nigeria was heavily sanctioned in the last three years.

The CBN has sanctioned Fidelity Bank a total sum of N469.9million in three years while Union Bank of Nigeria and Sterling Bank was sanctioned N146.25million and N53.33 million in three years respectively.

Specifically, CBN had sanctioned Fidelity Bank N446.9million in 2020, while Union Bank and Sterling Bank was penalized N10million and N34million in 2020 respectively.

The breakdown for Fidelity Bank’s 2020 indicated a sanction of N414.5million on four market infractions. Fidelity bank was sanctioned N410million for foreign exchange infraction in textile importation as directed by CBN.

Fidelity bank was also sanctioned N2million each for substituting OMO bill before maturity by the Bank and penalty for foreign exchange infraction in textile in that order. In addition, Fidelity bank was sanctioned N500,000 on trade infraction by the apex bank.

Union Bank of Nigeria contravened banking regulation in 2020 and attracted a penalty of N10million for the year 2020 (2019: N124.25 million. Details of the banking regulation which the Bank contravened during the year was as a penalty for involvement in importation of textile using foreign exchange from Nigerian foreign exchange market.

Also, Sterling Bank was fined N30million for non-processing of e-Form M for the importation of goods and N4million for recruitment of staff before CBN approval in 2020.

Other sanction in 2020 include N2mllion sanction for facility exposure to insider related higher than limit and not obtaining BVN on inactive credit customers 2017 RBS examination.