Infraction: CBN, SEC impose N277m sanction on Stanbic IBTC
…as Stanbic IBTC pays N32m penalty for cash evacuation to offshore accounts
By Kayode Tokede
The Central Bank of Nigeria (CBN) and the Securities Exchange Commission have imposed penalties of N277 million on Stanbic IBTC.
The breakdown shows that N32million sanction was imposed on Stanbic IBTC for cash evacuation to offshore account.
The group, Stanbic BTC Holdings paid the apex bank and SEC a total penalty that amounted to N277 million, according to latest audited result and accounts for full year ended December 31, 2020 that was submitted to the Nigerian Stock Exchange (NSE).
Extract from the group’s contraventions in 2020 revealed that CBN sanctioned the financial institution 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.
Our correspondent also gathered that the bank contravened 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 CBN Governor, Mr. Godwin Emefiele on March 5, 2019, suspended supply of foreign exchange for the importation of textile and textile materials into the country.
According to the bank in its audited results, “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.
“The SEC imposed a total penalty sum of N3million 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.”
Other sanctions are, “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).
“Cash evacuation penalt— 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 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.”
