Access Holdings’ N1.8086 Billion Regulatory Bill: A Damning Indictment
Access Holdings, Nigeria’s largest commercial banking group, has been slapped with a staggering N1.8086 billion in fines for various regulatory breaches, exposing significant lapses in compliance and risk management. This astronomical penalty, imposed by the Central Bank of Nigeria and Securities and Exchange Commission, raises serious questions about the bank’s internal controls and adherence to financial regulations. The infractions, including anti-money laundering violations, unauthorized sale of securities, and poor reporting of cyber incidents, demonstrate a troubling disregard for regulatory guidelines. With the financial sector under intense scrutiny, Access Holdings’ hefty fine underscores the imperative for banks to prioritize compliance and transparency to maintain stakeholder trust and avoid reputational damage
This is more reason why it is making the biggest earnings but makibg the lowest profit and delivering the lowest value despite size advantage over its peers .
The bank has faced significant regulatory challenges in recent years, resulting in substantial fines from regulatory authorities. In 2024, the bank paid over N1 billion in fines for various contraventions, while in 2023, it paid N90.6 million. The total amount paid in fines for both years is approximately N1.8086 billion.
The bank paid a hefty fine of N561 million for contravening Anti-Money Laundering (AML) regulations in 2024. Additionally, it paid another fine of N157.5 million for similar contraventions, bringing the total AML-related fines to N718.5 million. These penalties underscore the need for financial institutions to implement robust AML measures to prevent money laundering and terrorist financing.
Access Holdings was also fined N100.6 million for unauthorized sale of securities, N69 million for contravening regulations on reporting of cyber incidents, and N300 million for wrong warehousing of funds received from a government agency.
In 2023, Access Bank paid a fine of N81.6 million for various infractions, including employment of prospective employees without Central Bank of Nigeria (CBN) approval and late rendition of monthly returns. The bank also paid fines for late filing of its 2022 audited financial statements (N2 million), anti-money laundering and combating the financing of terrorism (N5 million), and use of unauthorized advert material (N2 million).
Access Holdings is not alone in facing regulatory compliance challenges. Other banks, such as Fidelity Bank, FCMB Group, and Union Bank, have also paid fines for various infractions. These penalties highlight the need for financial institutions in Nigeria to prioritize regulatory compliance and implement robust measures to prevent non-compliance.
The fines paid by Access Holdings in recent years serve as a reminder of the importance of regulatory compliance for financial institutions in Nigeria. By prioritizing compliance and implementing robust measures to prevent non-compliance, financial institutions can avoid costly fines and maintain the trust of regulatory authorities and customers.
