CBN sanctions UBA, GTBank for money laundry, others

The Central Bank of Nigeria (CBN) and the Financial Reporting Council of Nigeria (FRCN) have sanctioned the United Bank for Africa (UBA) and Guarantee Trust Bank (GTBank) for failure to comply with the Know-Your-Customers (KYC) guidelines and the anti-money laundering requirements.

The sanctions are contained in their audited financial statements for the six months ended June, 2019. It was learnt that GTBank Plc was asked to pay N10 million while the United Bank for Africa Plc was sanctioned N8 million.

GTBank disclosed in its audited financial statement for six months ended June 30 that it was sanctioned N2 million for Anti-Money laundering/ Combating the Financing of Terrorism regulation on three-tiered KYC and N8 million for 2018 risk- based examination findings.

The bank, however, explained that it was committed to fight all forms of financial crime including money laundering, terrorist financing, bribery and corruption.

UBA explained that it was sanctioned N2 million for late resolution of customer complaints and N6 million for deficiency in account documentation/late records retrieval.

The CBN earlier in the month  announced a series of new sanctions to be meted out to deposit money banks, mobile money operators, payment solution service providers and other financial institutions for electronic payment infractions.

The CBN issued the ‘Regulations on Electronic Payments and Collections for Public and Private Sectors in Nigeria’, which it described as a revision of the Guidelines on Electronic Payment of Salaries, Pensions, Suppliers and Taxes in Nigeria (2014).

It said the regulations were intended to guide the end-to-end electronic payment of salaries, pensions and other remittances, suppliers and revenue collections in the country.

According to the apex bank, the objective of the regulations is to fully align with the core objectives of the National Payments System Vision 2020 to ensure the availability of safe, effective and efficient mechanisms for conveniently making and receiving all types of payments from any location and at any time, through multiple electronic channels.