Babatunji Wusu –
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GTCO and its banking subsidiary, Guaranty Trust Bank (GTBank), paid nearly N6 billion in penalties over a three-year period for violating regulatory provisions in various countries.
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In 2022, the bank paid N4.2 billion in penalties, followed by N73.9 million in 2023 and N1.6 billion in 2024.
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Infractions occurred in multiple countries including Nigeria, Kenya, Ghana, Rwanda, The Gambia, Tanzania, and the United Kingdom.
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Penalties were imposed for failing to comply with banking laws, anti-money laundering regulations, consumer protection rules, and reporting requirements.
Overview: Guaranty Trust Holding Company (GTCO) and its banking arm, Guaranty Trust Bank Limited, have faced substantial financial penalties for regulatory violations over the past three years. According to their audited financial statements for 2022, 2023, and 2024, GTCO and GTBank were required to pay penalties totaling nearly N6 billion for contravening various banking regulations across several countries of operation.
In 2022, the largest penalty, amounting to N4.2 billion, stemmed from breaches in Nigeria, Kenya, Ghana, Rwanda, Tanzania, The Gambia, and the United Kingdom. The infractions included violations of anti-money laundering (AML) standards, failure to meet consumer protection requirements, and errors in financial reporting. Notably, the bank faced significant fines in the UK for deficient AML controls and was penalized in Kenya and Ghana for non-compliance with local banking regulations.
In 2023, GTCO and its subsidiary paid approximately N74 million in penalties for infractions in Nigeria, Rwanda, and The Gambia. These included fines for delays in regulatory submissions and violations of consumer protection laws. Additionally, the company incurred penalties for issues related to staff approvals, investment note regulations, and inadequacies in capital requirements.
The 2024 financial year saw GTCO pay N1.6 billion in fines. These included significant penalties in Nigeria for violations related to foreign exchange guidelines, consumer protection, and compliance returns. In Ghana, the bank paid N1.2 billion for breaching foreign exchange market operational guidelines. Rwanda also imposed fines for improper fee charges and incorrect reports.
Despite these financial setbacks, GTCO continues to maintain a strong market presence, demonstrating robust profitability. However, the company’s increasing regulatory fines highlight the importance of compliance in its operational strategy across diverse markets.
For further details, GTCO’s financial reports and disclosures can be found on their website.
