Breaking: Nine Financial-Institutions Fined N678m In 2023 For Regulatory-Breaches (Full Details)

According to The PUNCH, nine financial institutions paid a combined N678m in fines in 2023 for violating regulations, a significant decrease from the N6.31bn in penalties paid in 2022, representing an 89.25% reduction….CONTINUE READING

The institutions included FBN Holdings, Access Holdings, Guaranty Trust Holding Company, Zenith Bank, United Bank for Africa, Fidelity Bank, Wema Bank, Stanbic IBTC Holdings, and FCMB Group. These fines were imposed by regulatory bodies such as the Central Bank of Nigeria, the Securities and Exchange Commission, the National Insurance Commission, NGX Regulation Limited, FMDQ, and the National Pension Commission.

Zenith Bank, which had no penalties in 2022, paid N21m in 2023 for various infractions, including late submission of returns and unauthorized employment practices. FBN Holdings paid N17.26m in 2023, down from N26m the previous year, primarily for late submission of financial statements.

Access Holdings significantly reduced its fines from N604m in 2022 to N81.60m in 2023, with penalties from multiple regulators for issues such as unauthorized advertising and AML/CFT infractions. GTCO also saw a reduction, paying N73.98m in 2023 compared to N4.21bn in 2022, with fines related to risk assets examination and consumer protection.

UBA reduced its penalties from N1.14bn in 2022 to N110m in 2023, maintaining a zero-tolerance policy for compliance infractions. Fidelity Bank’s fines decreased from N100.71m in 2022 to N42.96m in 2023, while Wema Bank’s penalties increased to N61.35m from N2m the previous year.

Stanbic IBTC Holdings paid N124m in fines, down from N159m in 2022, with penalties for unauthorized employment and AML reporting failures. FCMB Group’s fines increased from N70.30m in 2022 to N145.10m in 2023, including infractions for unsecured loans and ATM complaint resolutions.

Experts attribute the reduction in fines to improved corporate governance, risk management, and regulatory compliance. However, some analysts argue that the N678m in fines still represents a significant loss for shareholders and call for a review of the regulatory framework to encourage better compliance and reduce penalties.

Published By: Destiny.Jnr