The Central Bank of Nigeria (CBN) has debited N2.4 billion (6.1 million pounds) in fines from Standard Chartered and N1.2 billion from Citigroup for allegedly helping South African telecoms firm MTN move funds abroad.
The CBN normally debits the account of banks when it imposes a fine or to implement aspects of its monetary policies such as cash reserve requirements.
The apex bank had last week ordered MTN and its lenders to return $8.134 billion it alleges MTN had remitted abroad in breach of foreign exchange regulations.
MTN denied any wrongdoing, while Standard Chartered said it was fully co-operating with the central bank with a view to resolving the issue as soon as possible.
Citibank announced in a statement that it has sent a detailed response to the central bank addressing the allegations after the U.S bank had received a letter imposing sanctions on it.
The CBN had fined Standard Chartered, Citibank, Stanbic IBTC Bank and Diamond Bank for allegedly failing to verify that MTN had met all its foreign exchange rules.
Stanbic IBTC Bank, the local unit of South Africa’s Standard Bank, was fined N1.8 billion and Diamond Bank N250 million.
Stanbic, said in a statement on Thursday, that it had been debited by the Central Bank for the fine.
Standard Bank said in a statement to the Johannesburg Stock Exchange that it would continue to engage with the Central Bank despite the debit.
Meanwhile, MTN Group has been put on review by Moody’s for downgrade after the South African mobile phone operator said it was on the hook for a total of $10.1 billion from its biggest market Nigeria, the ratings agency said on Thursday.
“MTN’s ratings have been placed on review for downgrade to reflect the uncertainty around the potential implications of the recent CBN and Attorney General’s announcements on MTN’s credit profile,” Moody’s said.
Africa’s biggest wireless phones group said on Tuesday the Nigerian Attorney General was seeking $2 billion in taxes incurred over the last decade.
That followed an order days before from the Central Bank of Nigeria that MTN’s Lagos-based unit hand over $8.1 billion that it said was illegally remitted abroad.
- Reuters