CBN, SEC, NGX fine First Bank heavily for fraudulent dealings, infractions

The Central Bank of Nigeria (CBN) has fined FBN Holdings subsidiary, First Bank of Nigeria Limited, N13.5 million for fraudulent dealings and other contraventions in 2022.

The penalties which were part of corporate disclosure  in audited annual statement of FBN Holdings’ financial statements, released on The Exchange on Friday,  revealed that the CBN penalised First Bank N2 million for fraudulent dealings/withdrawal through the opening of fraudulent accounts.

A fine of N11.5 million was also imposed on the lender for infractions in April in respect of the CBN-NESI Stabilization Strategy by First Bank Kaduna.

It was captured thus in the statement: “CBN penalty for aiding the fraudulent dealings/withdrawal through the opening of fraudulent accounts – Adcose Limited N2 million.

“CBN Penalty for infractions in the month of April in respect of the CBN-NESI Stabilization Strategy by First Bank Kaduna N11.5 million.”

In addition to the CBN, other regulators to which the organization reports also sanction it in the year under review.

The Securities Exchange Commission (SEC) which is the apex capital market regulators for quoted companies in the country sanctioned FBN Holdings for late submission of its financial statements.

Also, the self-regulatory organization (SRO) which is NGX Regulation Limited, also  fined FBN Holdings N8.1 million and SEC penalised the company N3.98 million for failing to meet its deadline for submission.

The annual report exposed it thus: “During the period ended 31 December 2022, the Company paid penalty of N8.1 million and N3.98 million to NGX Regulation Limited and the Securities Exchange Commission respectively; for the late submission of audited financial statements for the period ended December 31, 2021 and unaudited financial statements for the period ended March 31, 2022,” the statement reads.