Standard Bank says CBN may review penalty in MTN funds case

Standard Bank said the Nigerian central bank (CBN) may review a decision to penalise its West African unit for allegedly breaking the law in helping South African mobile phone group MTN send money abroad. Stanbic IBTC Bank is one of four banks that the Central Bank of Nigeria (CBN) alleges helped MTN illegally repatriate $8.1 billion.

“The CBN has written to advise the Bank that it will examine new submissions and documentation made by the Bank, and where justified, it will review its earlier decision on the penalty it imposed on the Bank,” Standard Bank said on Tuesday. The possible review comes a few days after the central bank said additional information from MTN may lead to an “equitable resolution,” helping shares in the South African wireless phone operator rebound.

MTN stock was up 1.6 percent to 81.50 rand. Stanbic was fined 1.8 billion naira ($5.9 million) for its role in sending the money abroad. The CBN also fined Standard Chartered 2.4 billion naira, Citi 1.2 billion naira and Diamond Bank 250 million naira. Standard Bank also said the CBN would not be debiting Stanbic for $2.6 billion, which the CBN said was the bank’s portion of MTN’s $8.1 billion funds which had been sent abroad.

Reuters