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The Central Bank of Nigeria (CBN) has penalised six banks with N1.314 billion debit over alleged non-compliance with a regulation on cryptocurrency accounts.
The banks include Stanbic IBTC, First City Monument Bank (FCMB), Access Bank, Wema Bank, United Bank for Africa (UBA) and Fidelity Bank.
Stanbic IBTC Bank, the domestic unit of Standard Bank Group Ltd, was fined N200 million for failing to comply with the apex bank’s directive, according to the lender’s 2021 consolidated and separate financial statement.
In February 2021, CBN had directed banks to close accounts of persons or entities involved in cryptocurrency transactions within their systems.
In the circular released to deposit money banks (DMB), non-bank financial institutions (NBFIs), and other financial institutions (OFIs), the apex bank noted that disobedience to the directive would attract severe penalties. The development elicited reactions from Nigerians, but CBN, in a 5-page circular, explained that cryptocurrencies portend the risk of loss of investments, money laundering, terrorism financing, illicit fund flows and criminal activities in the country.
According to the 2021 financial statements of some banks, CBN implemented the directive by placing monetary sanctions on the deposit money banks (DMBs).
Speaking during an investor conference call in Lagos, Wole Adeniyi, chief executive officer, Stanbic IBTC Bank, said the bank complied with the CBN directive, adding that the transactions it was sanctioned for may have passed through its system undetected.
Meanwhile the Group Managing Director of the United Bank for Africa (UBA), Kennedy Uzoka, on Thursday said that the N100 million fine slammed on the bank by the Central Bank of Nigeria (CBN), for violating crypto currency rules was regrettable.
Speaking at the bank’s 60th annual general meeting in Abuja, Uzoka explained that the crypto violation was not intended as the bank has since shut its doors against the virtual currency operations as directed by the CBN.
