Report: Four Nigerian Lenders Penalized for Failing to Block Crypto Transactions

Report: Four Nigerian Lenders Penalized for Failing to Block Crypto Transactions

The Nigerian central bank recently fined four financial institutions it accuses of failing to stop clients from using their respective platforms to conduct cryptocurrency transactions. According to one of the affected institutions, the central bank is using a certain “advanced ability” to detect crypto transactions. Lenders Unable to Detect Crypto Transactions

The Central Bank of Nigeria (CBN) recently penalized four lenders it accuses of failing to abide by a directive that forbids Nigerian financial institutions from facilitating cryptocurrency transactions, a report has said.

According to the report, one of the affected financial institutions, Stanbic IBTC Bank, was fined an equivalent of $478,595. The fine, according to the bank’s CEO Wole Adeniyi, relates to two bank accounts that have been used to facilitate crypto transactions.

While Adeniyi insisted that his organization is complying with the CBN’s directive, he admitted that his bank was unable to detect the transactions that ultimately prompted the central bank to take action. Unlike financial institutions, the CBN is reported to have access to an “advanced ability” that enables it to detect cryptocurrencies.

CBN’s ‘Advanced Ability’

As explained in the report, the central bank is now sharing access to its “advanced ability” with lenders that are eager to avoid its sanctions.

“It doesn’t seem that they are going to entertain a refund, but they are now sharing intelligence with us to be able to kind of deter clients,” Adeniyi is quoted explaining.

Besides Adeniyi’s bank, the CBN is reported to have imposed a fine of nearly $1.2 million against Access Bank Plc after the lender failed to close a client’s crypto account. United Bank for Africa was fined an equivalent of $239,000, while Fidelity Bank is expected to pay just over $34,000. Tags in this story Access Bank Plc, cbn, Central Bank of Nigeria, crypto transactions, Fidelity Bank, Stanbic IBTC Bank, United Bank for Africa, Wole Adeniyi

What are your thoughts on this story? Tell us what you think in the comments section below. Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. National Bank of Georgia to Regulate Country’s Crypto Sector REGULATION | 11 mins ago Bank of Russia Rejects Idea of Using Cryptocurrency to Circumvent Sanctions REGULATION | 13 hours ago

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