Finance Nigeria’s central bank has deducted N1.8 billion fine from Stanbic IBTC account over MTN ‘improper repatriation’

Finance Nigeria's central bank has deducted N1.8 billion fine from Stanbic IBTC account over MTN 'improper repatriation'

Yinka Sanni, Stanbic IBTC Holdings CEO (City Scoop) Nigeria’s central bank (CBN) has deducted the sum of N1.886 billion from Stanbic IBTC Bank Plc for breaking forex rules in MTN fund repatriation.

Recall that the apex bank slammed a huge N5.8 billion fine on four banks for allegedly aiding MTN in illegal capital repatriation.

The affected banks and their fines are Standard Chartered Bank (N2.4 billion), Stanbic IBTC (N1.8bn), Citibank (N1.2bn) and Diamond bank with N0.25 billion.

But in a regulatory filing to the Nigerian stock exchange on Thursday, September 6, 2018, Stanbic IBTC Holdings fumed over the deduction and maintained its position on the repatriation.

“ Following our earlier announcement to The Nigerian Stock Exchange (“NSE”) on 30 August 2018, in respect of the penalty of N1.886 billion imposed by the Central Bank of Nigeria (“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 has debited the account of our banking subsidiary with the CBN for the full amount of the above-stated fine advised to the Bank ,” the statement reads in part.

ALSO READ: Access Bank CEO says MTN repaying $8.1 billion could lead to a banking crisis

The bank said it has done nothing illegal and accordingly it “will continue to provide CBN with documents and details in support of our contention that our actions in relation to these transactions were not illegal.”

Stanbic IBTC Holdings PLC said the deduction does not impact on the capacity of its banking subsidiary to handle clients’ requests or clients’ ability to continue to carry out viable business transactions.

Last week, Nigeria’s central bank (CBN) ordered Africa’s telecoms giant, MTN to “refund a total of $8.134billion moved out of the country" for breaching the country’s forex regulations.

MTN has denied involvement in any wrongdoing. All you need to know as Nigeria’s central bank and MTN go head-to-head in new forex saga

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