- Slams ₦5.86bn fine for breaches
BY EDMOND ODOK, ABUJA – For infringing Nigeria’s extant laws and forex rules, the Central Bank of Nigeria (CBN) has slammed a whopping ₦5.86 billion fine on four banks that aided illicit repatriation of funds to South Africa on behalf of MTN Nigeria Communications Limited
Also, the MTN is ordered to immediately return to the CBN’s coffers a total of $8,134,312,397.63 unlawfully taken out of the country by the telecommunication giants.
Among the four Deposit Money Banks (DMBs) that have come under the CBN’s heavy sledge-hammer for violating foreign exchange regulations between 2007 and 2015 are Standard Chartered Bank that was fined N2,470,604,767.13 and Stanbic IBTC with a fine of N1,885,852,847.45
Others fingered in the illegal issuance of the CCIs include Citibank that will pay ₦1.2 billion fine and Diamond Bank Plc that has a ₦250 million penalty hanging on its head.
According to the apex bank, the penalties inflicted on the foursome were for “flagrant violation of extant laws and regulations of the Federal Republic of Nigeria, including the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, 1995 of the Federal Republic of Nigeria and the Foreign Exchange Manual, 2006.”
The Director, Corporate Communications, CBN, Isaac Okorafor, said in Abuja on Wednesday, August 29, 2018 that the apex bank’s decision was based on alleged remittance of foreign exchange with irregular Certificates of Capital Importation (CCIs) issued on behalf of some offshore investors of MTN Nigeria and subsequent investigations undertaken by CBN in March 2018.
Okorafor explained that CBN took the decision after evidence emerged from its thorough investigations how the four DMBs, with irregular CCIs issued on behalf of some offshore investors, assisted MTN to commit the infractions.
The CBN image maker said its inquiries indicated the about $3,448,119,321.72 was repatriated by one of the indicted banks on the basis of the illegally issued CCIs.
He also fingered the three other banks for repatriating $2,632,005,623.78; $1,766,263,212.75; and $348,914,501.30 respectively between 2007 and 2015.
Okorafor said the affected banks have therefore been ordered to immediately refund the various sums to CBN, adding that further investigations indicated that through unlawful conversion the shareholders’ loan to preference shares (interest free loan) of $399,594,146.00, about $8,134,312,397.63 was part of funds that were criminally taken out of Nigeria by the telecommunication company.
