Stanbic IBTC pays N1.886bn MTN related regulatory fine as Nigeria’s central bank debits its account

Stanbic IBTC PLC, the Nigerian subsidiary of South African Standard Bank, has had its account at the country’s central bank debited by N1.889 billion to meet a regulatory fine imposed last week when it was found to have aided telecommunications giant, MTN Nigeria, to illegally repatriate funds from the country.

The bank informed the Nigerian Stock Exchange and other stakeholders of this development on Thursday but maintained that it had done nothing illegal and assured investors and customers on cooperating with the apex banking authority and continuity in business operations.

“Following our earlier announcement to the NSE on 30 August 2018, in respect of the penalty of N1.886 billion imposed by the CBN on our banking subsidiary – Stanbic IBTC Bank PLC in relation to the remittance of foreign exchange on the basis of certain capital importation certificates issued to MTN Nigeria Communications Limited, we write to update The NSE that the CBN has debited the account of our banking subsidiary with the CBN for the full amount of the above stated fine advised to the Bank,” Stanbic said in a filed statement to the NSE.

Continuing, the bank said: “Stanbic IBTC Holdings PLC as well as our banking subsidiary maintain our position on this matter, which is the fact that the Bank has done nothing Illegal and accordingly the bank will continue to provide CBN with documents and details in support of our contention that our actions in relation to these transactions were not illegal.

“Please note that this debit does not impact on the capacity of our banking subsidiary to handle clients’ requests or clients’ ability to continue to carry out viable business transactions with either the Bank or any member of the Stanbic IBTC Group, whether in relation to the importation of capital or otherwise.

Our business transactions will continue to be handled professionally and in a manner that is aligned with Nigeria’s laws and regulatory guidelines.”