CBN Sanctions UBA, GTCO N1.18bn For Breaching FX Directive, Other Market Infractions
For breaching its foreign exchange directive, among other banking regulation rules, the Central Bank of Nigeria (CBN) in 2021 sanctioned United Bank for Africa (UBA) Plc and Guaranty Trust Holding Plc (GTCO) a total of N1.18billion.
As gathered by Westernpost, the two banks were sanctioned 11 times by CBN for market infractions with GTCO facing a penalty of N690million, the highest contravention in the bank’s history.
UBA was also sanctioned N260million in 2021 by the CBN, failing to comply with foreign exchange documentation of its three customers.
Extracts from both banks audited result and accounts for period ended December 31, 2021, revealed that GTCO was sanctioned N802.25million in 2021, while UBA was sanctioned N376.5million for failing to comply with five banking regulations.
The breakdown revealed that GTCO was sanctioned N690 million for failing to comply with FX transactions carried out by Betting and Gaming companies in 2021. The bank was also sanctioned N2million for non-refund of interest on debit of non-interest related charges to non-funded accounts.
CBN also sanctioned GTCO N4.25million for failing to comply with 2020 CBN AML/CFT risk based examination and N2million for E-channel customers complaints.
In addition, GTCO was sanctioned N4million and N100million by CBN for failing to comply with consumer protection compliance claims and Breach of revised CBN foreign Exchange Manual, respectively.
For UBA, a N260million sanction was imposed by CBN over foreign exchange documentation deficiencies in respect of three customer accounts.
The bank was also sanctioned N100milion by CBN, failing to impose cryptocurrency transactions by a customer.
Other sanctions imposed on UBA include, N12.5million KYC deficiencies on a customer, N2million for delay in a customer’s complaint resolution and another N2million on delay in the implementation recommended expression in standard offer letters.
