Guaranty Trust Bank UK Limited (GTBank UK) has reached settlement with the FCA, accepting findings in relation to historical Anti-Money Laundering (AML) controls in its operations in the period of October 2014 to July 2019.

The Bank has cooperated fully with the FCA investigation and has agreed a penalty sum of GBP7,671,800, which has been calculated by reference to a proportion of the revenues of GTBank UK over the relevant period and includes a 30% discount for early settlement.

The FCA’s investigation focused on GTBank UK’s AML controls and steps taken by GTBank UK to remediate these to ensure they operated in line with the relevant requirements. The findings are final, and no further action is anticipated in respect of this matter. The FCA acknowledged in its findings that GTBank UK has spent considerable time and resource in order to bring its AML standards up to the required level.

Commenting on the issue, Managing Director of GTBank UK, Mr. Gbenga Alade, said: “As a responsible financial services institution that is committed to best practices, GTBank UK takes its AML obligations extremely seriously. We note with sincere regret the FCA’s findings regarding AML control gaps in our operations in the past and we are very sorry for this.”

He further stated: “We would like to assure all our stakeholders and the general public that necessary steps have been taken to address and resolve the identified gaps. Whilst there was no direct customer impairment arising from the period under review [and the FCA’s findings do not include any instances of suspected money laundering], we have since reinforced our AML control framework and implemented changes in our AML processes in line with best practice with a view to ensuring that the highest standards are maintained in our operations.”

The Guaranty Trust Banking Group, including GTBank UK is fully committed to the fight against all forms of financial crime and to continuing to meet all applicable financial crime regulations and legislation globally. Our AML policies and controls, together with our overall risk management strategy, are regularly reviewed and revised to ensure that they remain relevant and current in line with the evolving regulatory requirements.

Frequently Asked Questions (FAQ)

On 10 January 2023, GTBank UK announced that it had reached settlement with the FCA, accepting findings in relation to historical anti-money laundering (AML) controls in its operations and agreeing to pay a penalty of GBP7,671,800 which includes a 30% discount for early settlement.

Commenting on the issue, Managing Director of GTBank UK, Mr. Gbenga Alade, said: “As a responsible financial services institution that is committed to best practices, GTBank UK takes its AML obligations extremely seriously. We note with sincere regret the FCA’s findings regarding Anti-Money Laundering (AML) control gaps in our operations in the past and we are very sorry for this.”

He further stated: “We would like to assure all our stakeholders and the general public that necessary steps have been taken to address and resolve the identified gaps. Whilst there was no direct customer impairment arising from the period under review [and the FCA’s findings do not include any instances of suspected money laundering], we have since reinforced our AML control framework and implemented changes in our AML processes in line with best practice with a view to ensuring that the highest standards are maintained in our operations.”

• Why Has GTBank UK Accepted This Settlement?

Following the FCA’s investigation into its Anti-Money Laundering (AML) controls during the period of October 2014 to July 2019, GTBank UK agreed to a settlement as part of the process of addressing historical issues and against a background of more recent improvements to its AML framework.

The investigations focused on gaps in GTBank UK’s AML processes in a period dating back to 2014 and running to a point in 2019 when GTBank had carried out significant remediation in relation to these matters.

• What Markets Were Impacted?

The FCA’s findings focused on our business operations in the United Kingdom only and does not apply to our subsidiaries outside of the UK.

• Why Did This Happen?

The FCA found that some of our historic AML controls and processes did not operate in line with relevant regulatory requirements. We have since taken the necessary steps to address the FCA’s concerns.

• How Does This Impact Your Customers?

There was no direct customer impairment. We however recognise that effective AML controls inspire customer trust and ensure better outcomes for communities where we operate.

• What Steps Have You Made in Improvements to GTBank UK’s AML Framework?

In summary, we have enhanced our AML control framework through a comprehensive remediation programme to address the specific issues identified in the FCA’s findings and obtained specialist advice and review from external advisors.

As relevant to the FCA’s findings, these steps have included enhancements to our AML policies, to our procedures relating to onboarding, customer due diligence, ongoing monitoring, and other AML related processes and enhancements to staff training. We have also conducted a comprehensive programme of work to review and as necessary remediate our customer files, which have been subject to review by external consultants.

We have also continued to invest in people and systems to ensure sustained adherence to our AML controls and to protect our customers and the communities where we operate. In the last seven years, we have made significant infrastructure investments in enhancing our AML control framework.

For example, in the last three years alone, we have invested over £10m in transaction monitoring and screening platforms to transform our control framework across the Group.  We have also made significant investments to staff training.

This has included providing our staff with further specialist training from external experts, developing our approach to internally led AML training and enhancing our controls relating to administering AML training.

Throughout the remediation process, we have taken advice from highly skilled advisors, including FCA-approved consultants, to guide the Bank through the changes required to enhance its AML control framework and related processes.

This has included review and advice on the Bank’s governance arrangements and culture relevant to AML compliance.

About Guaranty Trust Bank UK

Guaranty Trust Bank (UK) Limited (GTBank UK) is a limited company incorporated in England and Wales (05969821) with registered office at 60-62 Margaret Street, London, W1W 8TF. The Bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

GTBank UK is fully committed to the fight against all forms of financial crime and to continuing to meet all applicable financial crime regulations and legislation globally. Our AML policies and controls, together with our overall risk management strategy, are regularly reviewed and revised to ensure that they remain relevant and current in line with the evolving regulatory requirements.

Heritage Bank Plc, one of Nigeria’s most innovative service providers, has emerged as the first financial institution in Nigeria to win the “Best Supporting Bank with Central Bank of Nigeria’s Information on Anchor Borrowers’ Programme (ABP).”

The apex bank recently awarded Heritage Bank at the Bankers’ Award Night organised and held by the CBN Bankers’ Committee in Abeokuta for its robust publications of information in the media space on the several feats around the ABP.

The CBN also noted that Heritage Bank has continued to be a key financial partner that is creating economic linkages with small farmers and reputable large-scale processors, with a view of increasing agricultural output and significantly improving the capacity utilisation of processors.

Commenting on the recognition, Managing Director of the Bank, Akinola George-Taylor said:

“The award reflects our strong business fundamentals, resilience, and commitment to transforming Nigeria’s agricultural value-chain. With the support of the bank, we have helped farmers boost the production of commodities and stabilise inputs supply to agro-processors which has helped in addressing the country’s food insecurity.

“As a strategic partner that is complementing the efforts of CBN and other stakeholders in the agric sector, we have continued to communicate the broad objectives of ABP.  The bank has focused on increasing finance to the agricultural sector, the creation of new generations of farmers/entrepreneurs, and growing employment rates. This has led to the reduction of agricultural commodity importation and conservation of external reserves, and the assistance of rural smallholder farmers to grow to commercial production levels, amongst others.”

Heritage Bank has remained the pioneer Bank in financing the first ever large-scale rain-fed wheat production in Nigeria and is a prominent participating financial institution (PFI) under CBN’s ABP scheme.

Heritage Bank Plc in partnership with CBN has also disbursed N41billion to farmers from 14 states for the expansion of wheat production.

Wema Bank Plc emerged as the best-performing financial stock on the Nigerian Exchange during the 2022 financial year.

In a report titled “The Best Performing Stocks in Nigeria in 2022,” Nairametrics compiled and analysed the best-performing stocks in 2022, comparing their share prices as of December 31st, 2021, and December 30th, 2022. The analysis considered all 159 publicly listed companies during the period.

According to the report, Wema Bank’s share price appreciated by a whopping 441.7 percent. This helped it to close the 2022 year at N3.9, down from the 72 kobo recorded at the end of 2022.

The bank recorded a healthy 51% increase in gross earnings in the first nine months of 2022 and a 31% increase in post-tax profit. Investors rallied around the bank’s stocks despite a general downturn in most banking stocks during the year.

Similarly, Wema Bank declared a final dividend of 24 kobo per ordinary share to its shareholders in 2021.

This fuels speculation that increased profitability in 2022 could suggest a better dividend payout to shareholders. The Nigerian equity market rallied by 19.98% in 2022, higher than the 6.07% recorded in the previous year.

After many years of dividend freezes, the bank has resumed dividend payment to shareholders in the last three years. Wema has modernised its processes and has increasingly leveraged digital technologies to serve its customers, boosting efficiency and productivity in the process.

Additionally, the bank enjoyed a profitable year in terms of its financial performance and equity performance. Nairametrics ranked the bank as the best-performing commercial bank in the first half of 2022 based on metrics from its financial statements. Wema Bank also won the “Highest Dividend Yield” award at the Pearl Awards in 2022.

Stanbic IBTC Capital, the investment banking subsidiary of Stanbic IBTC Holdings Plc, won four awards at the recently concluded EMEA Finance African Banking Awards 2022.

For the 8th consecutive year, Stanbic IBTC Capital was named Best Investment Bank in Nigeria. Stanbic IBTC Capital also won awards for Best Debt House, Best Loan House and Best M&A House in Nigeria.

Stanbic IBTC Capital’s Chief Executive, Funso Akere, thanked EMEA Finance for the recognition which he attributed to the unwavering commitment of the Stanbic IBTC Capital team to provide clients with innovative investment solutions and best-in-class service delivery.

According to Funso, “Our dedicated team of investment banking specialists leverage sector insights and product expertise to offer our clients innovative advisory, capital markets and financing solutions. We thank our clients for trusting Stanbic IBTC Capital to handle their important investment banking transactions. These awards reinforce our position as the leading investment banking franchise in Nigeria.”

EMEA Finance is a leading global industry publication focused on the finance industry in Europe, the Middle East and Africa. This is the 15th edition of its African Banking Awards and the awards highlights the best investment banks, commercial banks, brokers and assets managers across Africa.

Stanbic IBTC Capital is the leading investment banking franchise in Nigeria and provides a complete suite of advisory, capital markets and financing solutions to clients operating in Nigeria.

Stanbic IBTC Capital is a subsidiary of Stanbic IBTC Holdings Plc, a leading end-to-end financial solutions provider in Nigeria which is listed on Nigerian Exchange Limited.

Customer demand improved again in the Nigerian private sector at the end of 2022, supporting further rapid increases in both new orders and business activity. In turn, firms took on additional staff, albeit only slightly.

Meanwhile, currency weakness continued to exacerbate cost pressures, subsequently feeding through to the second-fastest rise in selling prices since the survey began in 2014.

The headline figure derived from the survey is the Stanbic IBTC Purchasing Managers’ Index (PMI). Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.

The headline PMI reached 54.6 in December, up from 54.3 in November and signaling a marked monthly improvement in business conditions across the Nigerian private sector. Moreover, operating conditions strengthened to the greatest extent since April 2022.

Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank commented: “The headline PMI rose 54.6 in Dec, up from 54.3 in November which continues to reflect an improvement in private sector business conditions. The improvement was essentially driven by stronger customer demand which consequently resulted in new orders growth rate reaching an 8-m high in December. As a result of the higher level of demand, firms increased business conditions and output levels across various sectors (agriculture, manufacturing, wholesale & retail and services sectors).

“Remarkably, stronger demand was sustained despite persistent inflationary pressures. Notably, purchase costs increased at the fastest pace in 4-m leading to companies increasing their output prices. Throughout the year 2022, headline inflation continued to rise till it reached 21.47% y/y in Nov, driven by elevated energy and food prices, exacerbated by the Russia-Ukraine crisis. In near term, inflation will likely remain elevated, significantly above the central Bank’s target range of 6% -9%, which would keep the monetary policy authorities hawkish aiming at containing surging price levels.”

The rate of growth in new orders quickened to an eight-month high in December, linked by firms to stronger customer demand. With customer numbers and new orders rising, firms also increased their business activity at a sharper pace at the end of last year.

Output rose across each of the agriculture, manufacturing, wholesale & retail and services sectors. Improvements in demand were sustained despite ongoing strong inflationary pressures. In particular, purchase costs increased at the fastest pace in four months amid rising prices for fuel and raw materials, exacerbated by currency weakness.

In turn, companies increased their own selling prices at a much faster pace, and one that was only surpassed by that seen in December 2021.

Policies to help staff with higher living costs, particularly those related to transportation, as well as efforts to motivate staff led firms to raise salaries solidly again. Companies also increased employment levels to try to alleviate some pressure on existing staff members, though workforce numbers were up only slightly overall.

Purchasing activity rose sharply again, but the rate of accumulation in inventories softened to a 22-month low amid cost pressures and the use of inputs to support output. Meanwhile, suppliers’ delivery times shortened to the least extent since July 2022.

While prompt payments and competition among vendors led deliveries to speed up, fuel scarcity reportedly caused delays in some cases.

Finally, business confidence remained relatively muted, rising from November’s series low but still the second weakest on record. Those firms that expressed optimism linked this to planned investment and business expansions.

Ecobank Nigeria has again called on its customers to approach any of its branches to deposit old Naira banknotes into their accounts to avoid last minute rush, also assuring them of gaining a minimum of 8% interest on their savings.

This is against the backdrop of Central Bank of Nigeria (CBN)’s January 31, 2023, deadline for the exchange of old Naira notes.

In a message to customers, the bank noted that measures are in place in all its branches to ensure seamless, easy and stress-free cash deposit by customers, adding that the bank’s branches are now open for business on Saturdays to accept deposits from customers.

Responding to media questions in Lagos, Dr. David Isiavwe, Group Head, Operations & Technology, said there are no charges on cash deposit at any Ecobank branch, no matter the volume. He assured customers of prompt services any day of the week and on Saturdays when the branches are also opened to receive cash.

“We wish to inform our customers not to wait for rush hour to bring their cash to the bank. They should visit any of our branches closest to them to deposit their cash in their account. We have extended our working days to Saturday to enable customers deposit cash. Though we are impressed with the present turn out of customers, there is still the need for others to comply. We don’t want any of our customers to miss the CBN’s deadline.”

It would be recalled that the Federal Government on December 15 introduced new 200, 500 and 1000 banknotes into the nation’s financial system. The CBN said the naira redesign policy is to control currency in circulation, address the hoarding of the banknotes outside the banking system and also address shortage of clean and fit banknotes in circulation.

The apex bank stated that the old banknotes would cease to be legal tender in the country from January 31, 2023.

Moruf Oseni

Wema Bank Plc has announced the retirement of its Managing Director/CEO, Ademola Adebise.

He will be proceeding on terminal leave from January 2nd, 2023 after over 13 years of meritorious service on the Board of the Bank. He will be succeeded by Moruf Oseni, currently the Deputy Managing Director.

Ademola Adebise was appointed as the Managing Director/Chief Executive Officer of Wema Bank Plc in June 2018. He joined the Bank in June 2009 as an Executive Director and rose to become the Deputy Managing Director in 2015.

Under his leadership, he expanded the bank’s footprints to other locations in Nigeria, he improved the performance of the Bank and spearheaded the first dividend payment in 13 years, since then, he has ensured consistent dividend payment over the last four years.

The Bank has  grown its Total Assets by 155%, from N470 billion to over N1.2trillion. Deposits also grew by 214% from N350 billion to N1.1 trillion. He initiated the partnership with Bank of Africa to support its customers across the African continent which has increased the Bank’s market share and customer base. All these led to an additional growth of 2 million customer accounts in Nigeria and a market share of 3% of industry volumes. The Bank is now the leading collection bank for state and government agencies due to its effective and efficient platform. The Bank’s rating by agencies was upgraded to BBB investment grade.

The Bank significantly changed the digital landscape through the ALAT platform. The innovative  platform also came tops in the KPMG Digital Scorecard for leading retail banks in Nigeria and this was  based on in-depth insights into the state of user experience on retail banks’ digital channels.

Furthermore, the Bank launched the first SME Business School for capacity building and empowerment

for SMEs – this has benefitted over 20,000 small businesses. The Bank also became one  of the founding members of the United Nations Environmental plan for financial institutions (UNEP- FI) and continues to provide digital solutions for societal impact.

The Chairman of the Board, Mr. Babatunde Kasali on behalf of the Board and Management expressed  its profound gratitude to Ademola for his service and wish him the best in his future

endeavours.

Further, Wema Bank Plc also announced the appointment of Mr. Moruf Oseni as the Managing

Director/CEO subject to the approval of the Central Bank of Nigeria.

Moruf Oseni joined Wema Bank in June 2012 as an Executive Director. He has over 25 years of experience with more than 16 years at Senior and Executive Management levels. Moruf Oseni was an Executive Director for 6 years and Deputy Managing Director for the last 4 years and has demonstrated capacity to lead the Bank.

He presently has responsibility for the Digital Optimization Directorate which includes – Digital, Retail, Treasury, Operations, and the Technology Divisions. Moruf is also the Executive Compliance Officer of the Bank. He supervised the launch of ALAT – Nigeria’s 1st  digital Bank that has received local and global awards and multiple accolades. Before joining Wema Bank, Moruf was the CEO of MG Ineso Limited, a principal investment and financial advisory firm. Prior to MG Ineso, Moruf was a Vice President at Renaissance Capital, and an Associate at Salomon Brothers/Citigroup Global Markets in London.

Moruf holds an MBA degree from the Institut European d’Administration des Affaires (INSEAD) in France, a Master’s in Finance (MiF) from the London Business School and a B.Sc. in Computer Engineering from Obafemi Awolowo University (OAU), Ile-Ife, Nigeria. He is also an alumnus of both the Advanced Management Program (AMP) of the Harvard Business School and King’s College, Lagos.

Other Board appointments include:

Wole Akinleye: Appointed as the Deputy Managing Director. Wole has over 32 years Banking experience. He presently oversees Corporate Banking and South West Business Directorate for the Bank.

A Fellow of the Institute of Chartered Accountants of Nigeria (ICAN), Wole is an alumnus of the Advanced Management Program of the Harvard Business School. He obtained his first degree in Accounting from Obafemi Awolowo University in 1989 and subsequently, a master’s degree in Business Administration (Finance) from the same University.

Tunde Mabawonku: Appointed as Executive Director. He has over 23 years of experience and is presently the Chief Finance Officer and the Divisional Head of Finance & Corporate Services. Tunde has a Master’s in finance from the London Business School and a first degree in Economics from University of Ibadan.

He is a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN) & Chartered Institute of Taxation of Nigeria (CITN) and is an Honorary member

of the Chartered Institute of Bankers (HCIB). He has also attended several Senior Leadership programs.

In conclusion, the Board of Directors are confident that the appointment of the Executives will lead to  the continued transformation and growth of the Bank, particularly as the Bank

positions itself as a  market leader in Nigeria’s retail banking segment through technology and innovation.

The appointments take effect from April 1, 2023 and are subject to the approval of the Central Bank of Nigeria and other regulatory authorities.