CBN Debits 3 Banks N5bn For Aiding MTN’s ‘Illegal Repatriation’

The Central Bank of Nigeria, CBN, has reportedly debited the accounts of three banks to the tune of N5 billion.

According to Premium Times, the move was punishment for allegedly helping South African telecoms giant, MTN, illegally repatriate money from Nigeria.

The development comes days after the CBN fined four banks a total of N5.87 billion, for violating Nigerian foreign exchange laws.

The four banks are Standard Chartered Bank (N2.47 billion), Stanbic IBTC Nigeria (N1.88 billion), Citibank Nigeria (N1.265 billion) and Diamond Bank Plc (N250 million).

The apex Bank also ordered MTN to pay $8.13 billion in fine.

Reuters reports that Standard Chartered Bank, Stanbic IBTC and Citigroup had been debited to the tune of over N5 billion.

Standard Chartered was debited N2.4 billion, with Citigroup N1.2 billion.

On Friday, Stanbic IBTC confirmed that it had been debited, in a notice sent to the Nigerian Stock Exchange.

The bank, however, denied any wrongdoing, saying the debit by the CBN does not impact on its ability to handle clients’ request and effectively handle business transactions of all its clients.

The bank statement reads: “Following our earlier announcement to the Nigerian Stock Exchange on 30 August, 2018, in respect of the penalty of N1.886bn imposed by the CBN on our banking subsidiary – Stanbic IBTC Bank Plc (the ‘bank’) in relation to the remittance of foreign exchange on the basis of certain capital importation certificates issued to MTN Nigeria Communications Limited, we write to update the NSE that the CBN had debited the account of our banking subsidiary with the CBN for the full amount of the above stated fine advised to the bank,” the bank stated.

“Stanbic IBTC Holdings Plc as well as our banking subsidiary maintains our position on this matter, which is the fact that the bank has done nothing illegal and accordingly the bank will continue to provide the CBN with documents and details in support of our contention that our actions in relation to these transactions were not illegal.”

It is still unclear if Diamond Bank was debited, as the bank is yet to release an official statement as regards the development, as at press time.