CBN has slammed $8.134 billion fine on four banks – Business

The central bank of Nigeria (CBN) slammed a huge fine of 5.5 billion pounds sterling in four banks for allegedly helping the African telecommunications giant MTN in the illegal repatriation of capital.

The regulatory body said that the bank issued irregular certificates of capital import (CCI) on behalf of some offshore investors MTN Nigeria Communications Limited.

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

Isaac Ohoraofor, a representative of the CBN, said that a fine is required after applications for the transfer of foreign currency with irregular certificates of capital import issued on behalf of some offshore investors by MTN Nigeria Communications Limited and subsequent investigations conducted by the top bank in March 2018.

Okoroafor said that investigations showed that the amount of 3,448,119,321.72 was repatriated by Standard Chartered Bank on the basis of illegally issued CCIs.

Similarly, he said that Stanbic IBTC Nigeria, Citibank Nigeria and Diamond Bank Plc repatriated amounts of $ 2,632,005,623.78, $ 1,776,263,213.75 and $ 348,914,501.30 in the period from 2007 to 2015.

He said that the CBN directed the affected banks to immediately return the relevant amounts to the CBN.

How MTN "moved" half of the largest African reserve out of the economy

In 2016, the Nigerian legislator, Senator Dino Melaye, (Kogi West) warned the National Assembly about how MTN repatriated $ 12 billion from the country over a 10-year period.

In a statement raised at the plenary session, Melay said:My esteemed colleagues, MTN Nigeria paid $ 284.9 million on 6 February 2001 to buy a license for operations in that country.

«Between 2006 and 2016, through four Nigerian banks and minister of the Federal Republic of Nigeria, MTN transported more than $ 12 billion from Nigeria.

«This is about half of our external reserves. "If I get a nod in the Senate, I want to bring a significant movement the next day with confirmed facts to support this position, – he said.

The movement caused reactions from all sides, in less than a year the telecommunications giant was hit by a record fine of $ 5.2 billion for not being able to deactivate unregistered Sims.

Role of Standard Chartered Bank

The bank also in 2016 assured the regulatory authorities that it will fully cooperate in the alleged illegal repatriation of funds by MTN.

MTN Nigeria refuses repatriation of funds

MTN also refused to participate in any violations.

In the latest sanctions, there are no comments from banks and the telecommunications giant at the time of this report.

The Central Bank of Nigeria (CBN) imposed a huge fine of $ 8,344 billion in four banks to help the African telecommunications giant MTN in the illegal repatriation of capital.

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

Isaac Ohoraofor, a representative of CBN in tweet at the end of Wednesday, said: "Everything to also return a total of 8.344 billion dollars for breaking the rules of forex in Nigeria on the illegal repatriation of MTN."

The monetary authority will also ask MTN to return the money, which he incorrectly repatriated, an unrevealed source told Reuters.

How MTN "moved" half of the largest African reserve out of the economy

In 2016, the Nigerian legislator, Senator Dino Melaye, (Kogi West) warned the National Assembly about how MTN Nigeria repatriated $ 12 billion from the country over a 10-year period.

In a statement raised at the plenary session, Melay said:My esteemed colleagues, MTN Nigeria paid $ 284.9 million on 6 February 2001 to buy a license for operations in that country.

«Between 2006 and 2016, through four Nigerian banks and minister of the Federal Republic of Nigeria, MTN transported more than $ 12 billion from Nigeria.

"This is about half of our external reserves. "If I get a nod in the Senate, I want to bring a significant movement the next day with confirmed facts to support this position, – he said.

Role of Standard Chartered Bank

The Bank also in 2016 assured that it will fully cooperate with all law enforcement agencies and comply with all laws and regulations regarding the alleged illegal repatriation of funds

MTN Nigeria refuses repatriation of funds

MTN also refused to participate in any violations.

In the latest sanctions, there are no comments from banks and the telecommunications giant at the time of this report.

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