WEMA Bank, one of Nigeria’s financial institutions, faced penalties totaling N61.350 million in 2023 for contravening seven Nigerian laws, as disclosed in the bank’s full-year 2023 financial statement.
Among the infractions were breaches of cybersecurity laws, a section of the Bank and Other Financial Institutions Act (BOFIA) 2020, and Central Bank of Nigeria (CBN) circulars on Know Your Customer (KYC) regulations.
The bank received a N2 million fine for cybersecurity framework contravention and a hefty N20 million penalty for breaching Section 19(3A) of BOFIA, 2020. Additionally, Wema Bank was fined N17.45 million for violating CBN circulars on KYC, aimed at curbing money laundering and other financial crimes.
Late rendition of final returns cost the bank N10 million, while breaches in Risk-Based Supervision (RBS) and regulatory clearance incurred fines of N8 million and N2 million, respectively. The lender was further penalized N1.9 million for the late filing of its 2022 audited financial statements with the Nigerian Exchange Limited (NGX).
Despite implementing measures to tackle fraud and burglary, the bank reported losses of N256.387 million to these crimes in 2023, a significant reduction from N880.154 million lost in the corresponding period of 2022. According to credit risk analyst Mr. Osai Djemba, Wema Bank needs to introduce artificial intelligence measures to further reduce its exposure to theft.
Regarding customer complaints, Wema Bank left 9,974 complaints unresolved by December 2023, compared to 13,642 in 2022. Complainants demanded N10.843 billion over these issues, while the bank refunded N11.258 billion to customers. The bank highlighted efforts to improve customer experience, with a 60% reduction in average resolution time and an increased resolution rate from 93% to 98%.
Customers dissatisfied with the unresolved complaints and the bank’s regulatory breaches are likely to explore legal options or switch to other banks, emphasizing the importance of Wema Bank addressing these issues promptly to maintain customer trust and compliance with regulatory requirements.
