Business
Forex: MTN To Refund $8.13bn …As CBN Fines Four Banks N5.87bn
The Central Bank of Nigeria (CBN) has directed MTN Nigeria Communication Limited to refund $8.13 billion which was alleged to have been illegally repatriated by the firm with the aid of for four Nigerian banks.
The apex bank also imposed a total of N5.87 billion fine on Standard Chartered Bank, Stanbic-IBTC, Citibank and Diamond Bank over alleged illegal remittance of foreign exchange to offshore investors of MTN.
In a statement issued on Wednesday, the CBN accused the commercial banks of carrying out the transaction without regular ‘Certificates of Capital Importation (CCIs)’ which is a compulsory pre-requisite for such transactions.
The CBN Acting Director, Corporate Communications Department, Mr Isaac Okorafor, who issued the statement described the action of the banks and MTN as ‘flagrant violation of extant laws and regulations of the Federal Republic of Nigeria,”.
Giving a breakdown of the imposed fines, Okorafor said Standard Chartered Bank would pay a fine of N2.47 billion, Stanbic IBTC, N1.88 billion, Citibank Nigeria, N1.26 billion and Diamond bank, N250 million.
Okorafor while explaining the banks’ offenses, disclosed that investigations by the CBN revealed that $3.45 billion was repatriated by Standard Chartered Bank on the basis of illegally issued CCIs.
Similarly, he said the sums of $2.63 billion 1.766 billion and $348 million were repatriated by Stanbic IBTC Nigeria, Citibank Nigeria and Diamond Bank Plc, respectively during the period 2007 and 2015.
He said the CBN had directed the affected banks to pay the fines to the apex bank immediately.
Okorafor said that “the CBN investigation further revealed that on account of illegal conversion of MTN shareholders’ loan to preference shares (interest free loan) of $399,594,146.00, the sum of $8,134,312,397.63 was illegally repatriated by the company.
He advised all banks and multinational companies in Nigeria to adhere strictly to the provisions of all extant laws and regulations of Nigeria in their foreign exchange transactions.
He warned that failure by the management of banks and companies to abide by the existing guidelines, would be appropriately sanctioned, adding that the sanctions may include denial of access to the Nigerian foreign exchange market.
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