19 hours Ago By Olusegun Odunewu
Guaranty Trust Bank (GTBank), a subsidiary of Guaranty Trust Holding Company (GTCO), has been hit with a massive N1.7 billion fine for violations related to foreign exchange (FX) operations and consumer protection breaches across Nigeria, Ghana, Gambia, and Rwanda.According to GTCO’s recently released financial statement for 2024, the penalties stem from regulatory infractions in these countries, with the largest fine imposed in Ghana, where GTBank Ghana was penalized N1.
26 billion for violating foreign exchange market guidelines.GTCO’s total fine of N1,652,293,000 for Q5 2024 highlights the intensifying scrutiny of financial institutions, particularly in FX-related activities.GTBank Ghana bore the brunt of the penalties, facing a N1.
26 billion fine from the Bank of Ghana (BoG) for breaching operational guidelines in the foreign exchange market. Over the past two years, the BoG has tightened regulations on forex market operators, including banks, forex bureaus, brokers, and money transfer operators (MTOs).In June 2023, the central bank demonstrated its resolve by suspending the forex licenses of Fidelity Bank Ghana and First National Bank Ghana over similar violations, warning all financial institutions of severe consequences for non-compliance.
In Nigeria, the Central Bank of Nigeria (CBN) imposed fines totaling N383.65 million on GTCO for a series of infractions.These penalties highlight CBN’s intensified monitoring of banks’ FX dealings and consumer protection practices, ensuring compliance with regulatory standards.
READ ALSO: GTBank eliminates POS processing fees to support SMEs amid economic challengesGTCO’s Gambian subsidiary, GTBank Gambia, was fined by the Central Bank of The Gambia for various infractions: N4.72 million penalty for failing to attend a workshop on Risk-Based Supervision. N579,000 fine for non-compliance with rules on unauthorized fees and exchange rate application.
N1.48 million in additional fines for submitting erroneous reports to the Credit Reference Bureau and charging prohibited fees.GTCO’s operations in Rwanda also came under scrutiny, with the bank fined N2.
1 million for four separate regulatory breaches.Regulators Tightening the Noose on BanksThe series of fines across these four African countries reflects growing regulatory scrutiny of banking operations, particularly in foreign exchange transactions and consumer protection compliance.Regulators, including the CBN, Bank of Ghana, and Central Bank of Gambia, have signaled their commitment to clamping down on infractions, ensuring that financial institutions adhere strictly to FX regulations, banking ethics, and consumer rights protection laws.
With financial watchdogs imposing hefty penalties for non-compliance, banks operating across Africa face greater pressure to tighten their regulatory frameworks and operational procedures to avoid further sanctions.The post GTBank fined N1.7bn for forex violations, consumer protection breaches across four countries appeared first on National Daily Newspaper.
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