In acknowledgment of public interest over the recent sanctions imposed on four deposit money banks (DMBs) in the country, the Central Bank of Nigeria (CBN) has clarified that the move was not designed to restrict access to investor returns.
The sanctions, CBN said, arose due to irregularities with respect to repatriations made on behalf of MTN Nigeria Limited.
The apex bank, however, explained that the affected banks and MTN are engaging it in response to the sanctions and have provided additional information which is currently being reviewed with a view to arriving at an equitable resolution.
Recall that the apex bank had last month slammed sanctions totaling N5.87 billion on four banks.
The CBN also asked the banks to refund the sum of $8,134,312,397.63 for what it described as ‘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’.
According to the CBN, the highest fine of N2,470,604,767.13 was slammed on Standard Chartered Bank, while Stanbic IBTC Nigeria was fined the sum of N1,885,852,847.45.
For its punishment, Citibank Nigeria was penalized in the sum of N1,265,541,562.31, just as Diamond Bank was directed to pay the sum of N250 million for violating extant rules.
A statement by the CBN Director, Corporate Communications, Isaac Okorafor, assured that the CBN will continue to welcome foreign investments and investors.
Okorafor pointed out that some of the recent innovations and reforms of the Foreign Exchange regime were designed to simplify foreign exchange regulations.
The statement read in part: “We wish to restate that the CBN will continue to welcome foreign investments and investors. Indeed, some of our recent innovations and reforms of the Foreign Exchange regime such as the introduction of the NAFEX window, are designed to simplify foreign exchange regulations.
“Furthermore, the delegation of the issuance of Certificates of Capital Importation (CCIs) to commercial and merchant banks some years ago was done to instill confidence in the investor community and encourage the flow of foreign direct and portfolio investments into the Nigerian economy.
“The recent sanctions on the banks arose due to irregularities with respect to repatriations made on behalf of MTN Nigeria Limited and were not in any way designed to restrict access to investor returns.
“In response to the recent regulatory actions, the Banks and MTN are engaging the CBN and have provided additional information which is currently being reviewed with a view to arriving at an equitable resolution.
“We assure all investors that the integrity of the CCI regime remains sacrosanct and there shall be no retroactive application of foreign exchange rules and regulations.”