The Central Bank of Nigeria (CBN) has imposed a fine of N15.42 billion on Zenith Bank Plc for multiple regulatory violations during the 2024 financial year.
Grassroots Parrot reports that the penalties stem from infractions related to money laundering, foreign exchange violations, risk assessment failures, cybersecurity breaches, and other non-compliance issues.
The bank’s failure to maintain adequate controls against money laundering was a key concern, prompting the CBN to take decisive action. The regulator’s move aligns with broader efforts to enforce stricter financial regulations and uphold the integrity of Nigeria’s banking sector.
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According to an analysis of Zenith Bank’s audited financial results for 2024, the highest penalty—N14.64 billion—was imposed for foreign exchange-related violations.
Additionally, the bank was fined N322 million for inadequate due diligence in customer onboarding documentation and N250 million for violating existing CBN regulations.
The Bank’s further penalties included:
- N103.25 million for failing to conduct anti-money laundering reviews.
- N2 million for delays in resolving customer complaints.
- N14 million for non-compliance with CBN’s directive on reconciliation of customer charges.
- N61 million for other regulatory breaches.
- N4 million for deficiencies in risk assessment examinations.
- N4 million for cybersecurity infractions.
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The Nigerian government, along with regulatory bodies such as the CBN and the Nigerian Financial Intelligence Unit, has intensified efforts to combat money laundering, particularly with the rise of digital banking and mobile payment systems.
This has led to increased regulatory oversight of fintech and digital financial platforms to ensure compliance with anti-money laundering measures.
Under the leadership of CBN Governor Olayemi Cardoso, the apex bank has focused on stabilizing the financial sector by reinforcing regulatory frameworks, managing inflation, improving financial inclusion, and enhancing foreign exchange management.
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Cardoso’s administration has maintained a proactive approach to supervising financial institutions, ensuring they meet global banking standards, including capital adequacy and liquidity requirements.
The CBN has also taken a firm stance against money laundering and the financing of terrorism, strengthening measures to curb illegal financial activities.
Banks now face heightened scrutiny to prevent their operations from being exploited for illicit transactions.
Zenith Bank’s penalties highlight the CBN’s commitment to enforcing compliance and maintaining the credibility of Nigeria’s banking system.