Crypto Transactions: CBN Slams Fidelity, FCMB, Four Other Banks N1.31bn Fine

The Central Bank of Nigeria (CBN) has penalized six banks for N1.314 billion for alleged non-compliance with cryptocurrency account regulations.

The banks include Stanbic IBTC, First City Monument Bank (FCMB), Access Bank, Wema Bank, United Bank for Africa (UBA) and Fidelity Bank.

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Stanbic IBTC was fined the sum of N200m, FCMB had N400m fine, Access Bank N500m fine, Wema Bank N100m, UBA N100m and Fidelity Bank had N14.28m fine respectively.

Meanwhile, In February 2021, the apex bank had directed banks to close accounts of persons or entities involved in cryptocurrency transactions within their systems.

According to the 2021 financial statements of some banks seen by TheCable, CBN implemented the directive by placing monetary sanctions on the deposit money banks (DMBs).

In the circular released to deposit money banks (DMB), non-bank financial institutions (NBFIs), and other financial institutions (OFIs), the apex bank noted that disobedience to the directive would attract severe penalties.

The development elicited reactions from Nigerians, but CBN, in a 5-page circular, explained that cryptocurrencies portend the risk of loss of investments, money laundering, terrorism financing, illicit fund flows and criminal activities in the country.