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CBN Fines Access Bank, UBA, Stanbic Bank N800 Million For Assisting Crypto Transactions

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CBN Fines Access Bank, UBA, Stanbic Bank N800 Million For Assisting Crypto Transactions, CBN Officially Puts a Stop to Cryptocurrency Trading in Nigeria

The Central Bank of Nigeria, CBN, has fined Access Bank, UBA and Stanbic Bank N800 million for assisting crypto transactions.

CBN fined the banks individually for allowing crytocurrency transactions despite the federal government’s ban on crypto trading.

A report by Bloomberg revealed that CBN fined the banks a cumulative amount of 800 million naira.

It said the banks did not comply with its directives that prohibited consumers from transacting in cryptocurrency.

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According to Bloomberg, CBN has a high tech it uses to detect crypto transaction even if they escape banks’ notices.

How the banks faltered:

According to CBN, Access Bank Plc failed to shut down the crytocurrency accounts of its customers.

For this reason, the CBN fined Access Bank Plc 500 million naira.

Similarly, the CBN said cryptocurrency traders used two of Stanbic IBTC Bank’s accounts for crypto transactions.

The apex ban, therefore, fined Stanbic bank the sum of N200 million.

Likewise, for the United Bank for Africa (UBA) CBN fined it 100 million naira because one of its customers used its accounts to trade cryptocurrency.

Reacting to the fines, Chief Executive Officer of Stanbic IBTC, Wole Adeniyi said the transactions escaped stanbic.

He said the bank’s system did not detect the transaction, resulting in CBN fining the bank.

“It doesn’t seem that they are going to entertain a refund, but they are now sharing intelligence with us to be able to kind of deter clients,” Adeniyi added.

The three banks are not the only banks that CBN has fined for failing to comply with its directives on cryptocurrency transactions in the country.

Recall that in a 5th February 2021 circular to all local financial institutions in Nigeria, CBN had directed them not to aide transactions in cryptocurrency.

It also told the local financial institutions to close all customers’ crytocyrrency accounts with them.

The CBN had that any default to its directives “will attract severe regulatory sanctions” instructing that the letter was with immediate effect.”

Implications:

The CBN is still vehemently tight on its directives against cryptocurrency usage in the country.

The fines on the banks will further make the banks become even more vigilant in ensuring that no crypto trading escapes them.

 

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