Investigations conducted by Integrity Reporters further revealed that cumulatively the Holdings company was fined and panelized at N2 billion by the regulators which include Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) as the group was in 2015 sanctioned N1.9 billion over various infractions.
First Bank of Nigeria Limited, the financial institution subsidiary was sanctioned most in 2016 followed by the holdings company.
CBN’s sanctions were the highest, followed by SEC in the year under review.
Specifically, FBN Holdings was sanctioned N0.4 million by the NSE for late submission of 2015 annual accounts while SEC penalized the Holdings N20.75 million for late submission of 2015 annual accounts and fourth quarter unaudited accounts.
The bank subsidiary, First Bank of Nigeria Limited was sanctioned by CBN N30 million in respect of registration of International Money Transfer Operations (IMTOs) and N20 million for cases of linking multiple accounts to single Biometric Verification Number (BVN).
CBN also sanctioned the bank N12 million for various Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) infractions emanating from spot check carried out on the bank’s branches in January 2016.
The apex banking regulating body penalized the bank N4 million for publication of appointment without prior approval and late rendition of STR returns to the NFIU in October 2015 respectively.
Furthermore, CBN sanctioned First Bank of Nigeria Limited N2 million for failure to implement external auditor’s recommendation contained in 2014 management letter while N2 million was imposed on the bank for excess chargers on customers’ accounts.
CBN for the year under review sanctioned the bank N2 million for exceeding regulatory single obligor limit in 2015, another N2 million for opening of accounts and partnering with unlicensed international money transfer service operators.
The other two sanction include N175,000 sanction for late rendition of daily returns in 2016 and N100,000 for non-rendition of returns to NOTAP.
FBN Merchant Bank, another part of FBN Holdings Plc, was sanctioned N300,000 by SEC for failure to notify the commission of the resignation of a sponsored individual within five working days of resignation and N2 million by CBN for failure to comply with a directive on the submission of documents as conditions of the approval of the appointment of one of the bank’s directors within two weeks.
In addition, FBN capital Limited was sanctioned N418,000 by SEC for failure to respond timely to request for information and N135,000 by SEC for contravention of section 161 of ISA 2007 regarding issuance of unregistered units of FBN Nigeria Eurobond Fund.
Some of the shareholders of the bank who spoke with this medium on the basis of anonymity wonder why the management of the companies under the holding company and Holding company itself would be violating the laid-down rules and regulations of the market operators to that extent.
They lamented that the money that should be coming to shareholders of the companies in form of dividend are being paid to regulators as fine. The organisation, they said, should curb the ugly trend which they argued was not the tradition of the bank until recent
