VFD Bank Denies N8m Sanction by CBN, SEC as Nigerian Banks Strengthen Core Banking Platforms

• VFD Microfinance Bank has denied a report that it was fined N8 million by the CBN and the SEC violations
• The bank said the report contained inaccuracies as it does not trade FX, being a microfinance bank
• The bank disclosed that the report, sourced from another platform, is not an accurate representation of events

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

VFD Microfinance Bank has debunked reports that it was sanctioned by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) for various infractions, including forex violations.

The bank disclosed this in a rebuttal sent to Legit.ng that it was not among the 10 banks sanctioned by the regulatory bodies for the violations.

VFD denies CBN, SEC sanctions

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VFD MfB said it does not trade in forex, being a microfinance bank, calling the report misleading.

Our reporter sourced the report from another platform, revealing that the VFD was fined N8 million naira for infractions.

The Bank said:

“VFD Bank was erroneously listed among the banks sanctioned by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) for FX violations. It mentioned VFD Bank as being sanctioned for forex violations, whereas Microfinance Banks (MFBs) do not engage in forex transactions… The article incorrectly stated that VFD Bank paid a fine of N8.1M, an entirely false claim—VFD MFB has not paid any such amount.”

“VFD Bank does not trade FX”

Punch reported that regulatory bodies overseeing activities of commercial banks in Nigeria have fined 10 banks for various infractions on foreign exchange guidelines and other offences.

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The agencies, which include the Central Bank of Nigeria and the Securities and Exchange Commission, fined the financial institutions over N1.502 billion as penalties in the first six months of 2024.

List of sanctioned banks

The violations underscore Nigerian financial institutions' ongoing challenges in complying with regulatory guidelines.

The banks include First City Monument Bank (FCMB), Access Bank, Stanbic IBTC, Zenith, UBA, Guaranty Trust Bank, Sterling Bank, Fidelity Bank, and First Bank.

GTBank issues another update for all customer

Legit,ng earlier reported that Guaranty Trust Bank (GTBank) has announced that its digital banking channels are entirely online following a system upgrade.

In a statement released on X, the bank reassured customers that all branches across Nigeria are also now operational and ready to serve.

Legit.ng earlier reported that GTBank transitioned to a new and robust Finacle Core Banking Application Systems suite.

Source: Legit.ng