BREAKING: CBN Fines Zenith Bank N15.42bn For Money Laundering, Forex, Other Infractions
The Central Bank of Nigeria has imposed a total fine of N15.42bn on Zenith Bank Plc for failing to comply with banking regulations during the 2024 financial period, THE WHISTLER can authoritatively report.
The fine stems from the bank’s failure to comply with key banking regulations, including violations related to money laundering, foreign exchange infractions, violations related to risk assessment examinations, cyber security breaches, and other non-compliance issues.
Additionally, concerns were raised about the bank’s failure to meet prescribed standards in maintaining proper controls against money laundering activities.
THE WHISTLER understands that the CBN’s decision to impose such a significant fine is part of its broader effort to ensure stricter adherence to financial regulations, which is critical to maintaining the integrity of Nigeria’s banking system.
An analysis by THE WHISTLER of Zenith Bank’s audited financial results for the 2024 financial year presented to the Nigerian Exchange (NGX) revealed that the bank was also fined for late resolution of customers’ complaints and non-compliance with the CBN directive on reconciliation of customer charges.
According to the Audited Financial Results of Zenith Bank, the CBN imposed the highest monetary fine of N14.64bn on the bank for infractions from foreign exchange examination.
Similarly, the bank was penalised for its second heaviest violation when the apex bank slammed it with the sum of N322m for failing to conduct checks on customers’ onboarding documentation.
In addition, it suffered another penalty in the sum of N250m for violation of extant regulations of the CBN.
For failing to conduct anti-money laundering reviews, the CBN further imposed a fine of N103.25m on Zenith Bank Plc in the 2024 financial period.
The Nigerian government, alongside regulatory bodies like the CBN and the Nigerian Financial Intelligence Unit, has in recent times increased efforts to combat money laundering.
The rise of digital banking and mobile payment systems in Nigeria has opened new avenues for money laundering.
However, this has also led to an increased focus on strengthening regulatory oversight of fintech and mobile payment platforms to ensure they adhere to anti-money laundering measures.
Further analysis of the 2024 Audited Financial Statement of Zenith Bank revealed that the bank was fined N2m for late resolution of the customer’s complaint; N14m for non-compliance with the CBN directive on reconciliation of customer charges; N61m was also imposed as a penalty on anti-money laundering findings; and N20m for non-compliance with CBN directives.
Also, a penalty of N4m was imposed on Zenith Bank as a result of an infraction related to the risk assessment examination, while additional N4m was imposed on the bank as a penalty for cybersecurity breaches.
Under the CBN Governor, Olayemi Cardoso, the apex bank has worked to stabilise the banking sector in the face of several internal and external challenges.
His leadership has focused on strengthening regulatory frameworks, managing inflation, improving financial inclusion, and enhancing the country’s foreign exchange management system.
His administration has continued to drive reforms aimed at improving banking sector efficiency and risk management.
The CBN has maintained a proactive approach to supervising financial institutions to ensure adherence to global banking standards. This includes capital adequacy and liquidity requirements to prevent bank failures.
In line with global trends, Cardoso has taken a firm stance on anti-money laundering (AML) and combating the financing of terrorism (CFT).
The CBN has continued its efforts to curb illegal financial activities, ensuring that Nigerian banks comply with international AML/CFT regulations.
The fight against fraud and financial crime has been a key part of his agenda, with banks now under even greater scrutiny to ensure their operations do not support illicit financial activities.
