NGX, SEC, CBN sanction FBN Holdings N629.7m in 2021FY over 22 market infractions

The capital market and money market regulating bodies, Securities and Exchange Commission (SEC) Nigerian Exchange Limited (NGX), and Central Bank of Nigeria (CBN) in 2021 financial year sanctioned FBN Holdings N629.7million for failing to comply with 22 market infractions.

The banking subsidiaries of FBN Holdings, First Bank of Nigeria Limited was sanctioned nine times by SEC and CBN for N350 million for failing to comply with nine market infractions, while the group was sanctioned N0.7million by the the Nigeria Exchange for late filing of audited financial statements for the period ended September 30, 2021.

FBNQuest Merchant Bank Limited, another subsidiary of FBN Holdings was sanctioned N279 million in 2021 financial year for failing in 12 market infractions.

The breakdown of First Bank of Nigeria Limited sanctioned includes payment of N140 million for contravention of Extent Foreign (FX) Regulations and a penalty of N2 million for contravention of CBN Circular Ref: FPR/DIR/GEN/CIR/06/004 dated Sept 28, 2016.

According to the Holdings 2021 audited result and accounts for the period ended December 31, 2021, the bank paid N2 million to CBN as penalty over a case of unauthorized transactions and unjustified charges against a customer, KHALIFA; penalty of N2 million was paid to CBN for misappropriation of 75m Treasury Bill Investment at Keffi Branch on behalf of Achara Amechi Peter and CBN Circular CPD/MCD/CON/FB2/04/028 and dated July 26, 2021.

The 2021result and accounts added: “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.

“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.

“The bank paid penalty of N100 million for contravening regulation on Crypto-currency and non-closure of affected account.

“The bank paid penalty of N100 million for Contravening Regulation on Crypto-currency; 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.”