The Central Bank of Nigeria (CBN) has wielded the big stick against four Deposit Money Banks, asking them to pay a total of N5. 87 billion for breaching extant laws on foreign exchange.
It also directed a telecommunication company to immediately refund the sum of $8,134,312,397.63, illegally repatriated by the company to the coffers of the CBN.
The CBN said it imposed heavy sanctions on the DMBs 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”.
Announcing the decision in Abuja yesterday, CBN’s Director, Corporate Communications, Isaac Okorafor, said that the actions became necessary following allegations of remittance of foreign exchange with irregular Certificates of Capital Importation (CCIs) issued on behalf of some offshore investors of MTN Nigeria Communications Limited and subsequent investigations carried out by the apex bank in March 2018.
Figures obtained from the CBN indicated that the highest fine of N2,470,604,767.13 was slammed on one of the bank, while another was fined the sum of N1,885,852,847.45.
The other two banks was penalized in the sum of N1,265,541,562.31 and N250 million for violating extant rules.
The CBN spokesman further disclosed that the decision of the Bank followed thorough investigations by it into the allegations of remittances by the four banks of forex with irregular certificates of Capital Importation (CCIs) issued on behalf of some offshore investors.
He said the investigations revealed that the sum of $3,448,119,321.72 was repatriated by a bank on the basis of the illegally issued CCIs. Similarly, he said the sums of $2,632,005,623.78, $1,766,263,212.75 and $348,914,501.30 were repatriated the three other banks respectively during the period 2007 and 2015. Accordingly, he said the CBN had directed the affected banks to immediately refund the respective sums to the CBN.
The CBN investigation further revealed that on account of illegal conversion the shareholders’ loan to preference shares (interest free loan) of $399,594,146.00, the sum of $8,134,312,397.63 was illegally repatriated by the a company.