The Central Bank of Nigeria (CBN) and Securities and Exchange Commission (SEC) imposed N379million sanctions on Stanbic IBTC Holdings Plc in two years, our correspondent can report.
Breakdown by Western Post revealed that the group paid the apex bank and SEC total penalties that amounted to N277 million in 2020 and N102 million in 2019.
Extract from the group’s contraventions in 2020 revealed that CBN sanctions IBTC heavily for using foreign exchange to import textile into the country.
Also, the financial institution was sanctioned for underpayment of Industrial Training Fund (ITF) contribution between 2013 and 2018.
Western Post also gathered that the bank contravenes cash evacuation to its offshore account through Messrs and an alleged contravention of the provision of memorandum 25 (5) of the CBN’s FX manual in processing FX transfers.
From the group’s audited results for the period ended December 31, 2020, the CBN imposed a penalty of N152million on the bank, following the investigation, which was conducted on foreign exchange used to import textiles for the period of 02 and 15 October 2019.
The apex bank on March 5, 2019, suspended supply of foreign exchange for the importation of textile and textile materials into the country.
The CBN Governor, Mr. Godwin Emefiele had announced the foreign exchange restriction at a meeting with textile manufacturers and cotton farmers in Abuja.
Other sanctions are
- Penalty on involvement in textile importation using foreign exchange sourced from the Nigerian market. The CBN imposed a penalty of N10 million on the bank following the investigation which was conducted on foreign exchange used to import textiles for the period of 16 October – 30 November 2019.
- Penalties arising from the AML/CFT examination of the Bank. The CBN imposed a penalty of N20million on the bank for failing to report some alleged suspicious transactions.
- Cash evacuation penalty. The CBN imposed a penalty of N32million on the bank for contravening the extant rules on cash evacuation to the bank’s offshore account through Messrs.
- The SEC imposed a total penalty sum of N3miillion against SIAML for maintaining its mutual funds’ collection bank accounts a non-custodian.
- Penalty of N2million for failure to obtain CBN approval in the validation of non-valid for foreign exchange transaction.
- Penalty of N2million by CBN for not fully complying with the directive on Linking BVN details exchange signatures, directors and beneficial owners to their respective entity accounts (incorporated and non-incorporated).
- The CBN penalized the bank for the sum of N43.2million in respect of alleged contravention of the provision of memorandum of 25 (5) of the CBN’s FX manual in processing FX transfers.
- Underpayment of Industrial Training Fund (ITF) contribution- The ITF imposed a penalty on SISL amounting to N12.76million for its underpayment of ITF contribution over a 5 year period (2013 to 2018).
- Breach of SEC rules- The SEC imposed a penalty sum of N386,000 on SINL for breaching the SEC rules as well as the Fund’s Trust Fund with the respect to the Vantage Equity Fund.