GTBank called in supposed foreign exchange offenses, information piracy, underhanded techniques, others

The Global Integrity Crusade Network (GICN), a public organisation, has actually stated that its current examination exposed that Guaranty Trust Bank (GTBank) Limited, a subsidiary of Guaranty Trust Holding Company Plc, additionally called GTCO Plc, has more than 10,000 clients being revealed to severe risk without their understanding.

NewMailNG reports the team, in the Private Investigation Report (PIR), declared GTBank Limited, led by Segun Julius Agbaje, Managing Director/Chief Executive Officer (CHIEF EXECUTIVE OFFICER), unethically opened up checking account for a number of countless the stated “customers” without their permission.

Edward Ejembi Omaga, President of Global Integrity Crusade Network, while offering the team’s PIR at a globe interview Friday, October 4, 2024, kept in mind the record showed that GTBank had actually been penalized drastically for various infractions also at the global degree.

The organisation, in the record, additionally levelled various other motley claims approaching “unscrupulous, unethical and criminal activities” versus the banks.

Justifying its duty to accomplish the examination, Omaga insisted that the CIGN Private Investigation Report was assembled according to Section 24 (d) and (e) of the 1999 Constitution of the Federal Republic of Nigeria (as changed).

The team stated the basic goal of the record to assist in guaranteeing that corrupt techniques are eliminated both the crucial financial field of the Nigerian economic situation and the nation at big.

Explaining the fundamental threats in GTBank’s Unsolicited Account Opening for reckless people as its “so-called” clients to unduly increase its client base, Global Integrity Crusade Network stated since the moment of its record, there more than 10,000 clients revealed to severe risk without their understanding, as accounts were allegedly opened up in the Guaranty Trust Bank in their names without their permission.

According to the record, Guaranty Trust Bank Limited was included July 19, 1990, and accredited to take part in industrial financial and various other allied solutions within Nigeria and somewhere else.

GICN, in the record, more exposed the financial institution has Ordinary Shares of 25 billion with 8 Active Directors, yet its only investor and individual with considerable control is Guaranty Trust Holding Company Plc, stood for by Segun Julius Agbaje.

The record mentioned: “In the United Kingdom, Segun Julius Agbaje started the Bank by registering same at the Companies House as Rainsouth Limited with Number 5969821 on 8 December, 2006.

“The said Rainsouth Limited went through various changes until it became Guaranty Trust Bank (UK) Limited on 17 March, 2008. One of the corrupt practices recently linked to Guaranty Trust Bank Limited in Nigeria has to do with Unsolicited Accounts Opening.

“This is a situation where a customer did not approach the bank or show any interest in maintaining an account with the bank. Yet, the bank goes ahead to source for the customer’s information, such as telephone number, date of birth, Bank Verification Number (BVN), and other vital details to open an account for the customer without his/her consent.”

The team additionally affirmed in the record that “the aim of this practice is to increase the customer base of the Bank, thereby giving it high ranking in terms of size, capacity and profitability.”

Omaga informed press reporters: “We submit that Unsolicited Accounts Opening tantamount to breach of data privacy, identity theft, and can expose the innocent account holders to lots of financial crimes.

“As of today, there are over 10,000 customers in the database of Guaranty Trust Bank Limited who are already exposed to grave danger without their knowledge.”

GICN also suggested in the record that several of the influenced clients, that obtained the wind of the growth have actually endangered to take legal action against the financial institution.

The team, at the media rundown similarly stated that its PIR record affirmed that Guaranty Trust Bank, besides its participation in Unsolicited Accounts Opening for over 10,000 ‘customers’, fast created deceptive monetary declarations and proclaimed incorrect earnings to misguide the general public on its monetary settings.

The record kept in mind: “We have equally uncovered that Guaranty Trust Bank Limited has been declaring profits that do not reflect its actual financial performance.

“For instance, GTCO PIc on 11 September, 2024, released its Audited Consolidated and Separate Financial Statements for the period ended 30 June, 2024, to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE) wherein the whopping sum of N1.004 trillion was declared as Profit Before Tax (PBT).”

“This caused the Group to be reported all over media as ‘the first Nigerian financial institution to cross the N1trillion mark in profit.’ ”

GICN, nevertheless, mentioned in the record: “It is our finding that these figures, as contained in the Audited Statements, are mere conjectures hurriedly put together by Segun Julius Agbaje and his team to deceive the Securities and Exchange Commission (SEC), Financial Reporting Council of Nigeria (FRCN), Central Bank of Nigeria (CBN), customers/investors and the general public into believing that all is well with GTB.”

The team, while testing the Nigerian governing bodies to do their examinations also, more insisted that GTBank “could not justify its stated profit of N1 trillion”, which it launched to the general public lately, claiming that such enormous earnings can have been proclaimed with roundtripping.

Omaga stated at the rundown: “Ladies and Gentlemen, there is no gainsaying the fact that Guaranty Trust Bank Limited has become notorious over the years for engaging in deceptive accounting practices to artificially inflate profit figures.

“For instance, no substantial pieces of evidence presented by Segun Julius Agbaje to support the assertion that GTCO Plc made over N1 trillion in profit as at 30 June, 2024. Even at that, it is very possible that the figures were generated through roundtripping.”

He discussed the idea of roundtripping as “a process where funds are moved in and out of the bank through different accounts or entities to create an illusion of legitimate transactions.

“The combination of this process and other unethical business practices within the Bank points towards the direction of systemic corruption, fraud and money laundering, which are opened for further investigation by the relevant agencies.”

“It is feared that such ugly situation if not properly checked could have the tendency of not only undermining customers/investors’ confidence in the Bank but pose significant risks to the stability of Nigerian financial sector.”

Besides the supposed deceptive monetary declarations, the PIR record better kept in mind Guaranty Trust financial institution had actually been penalized drastically for various infractions at the global degree.

Omaga, President of GICN affirmed: “Surprisingly, Segun Julius Agbaje did not tell Nigerians that the corporate image of Guaranty Trust Bank Limited has been terribly battered in many foreign countries where it is carrying on business.

“He (Agbaje) lied by stating in the recent Audited Statements that GTCO Plc ensures compliance with disclosure requirements under the Disclosure and Transparency Rules of the UK Financial Conduct Authority (FCA).”

The record mentioned: “The truth is that Guaranty Trust Bank (UK) Limited was sanctioned by the same FCA to pay a financial penalty of £525,000 for breaches of Principle 3 (Management and Control) of the Authority’s Principles for Businesses between 19 May, 2008 and 19 July 2010.

“In another development, the FCA imposed on Guaranty Trust Bank (UK) Limited a financial penalty of £10,959,700 pursuant to Section 206 of the Financial Services and Markets Act 2000.”

The team stated: “As usual, the bank agreed to resolve this matter at an early stage and was given a 30% discount which reduced the fine to £7,671,800.

“The FCA, in justifying this financial penalty, which was paid with customers/investors’ funds not later than 24 January, 2023, stated that Guaranty Trust Bank (UK) Limited again failed to put in place policies and procedures to prevent and detect money laundering.

“FCA considered this repeated misconduct to be a direct result of the inability of the Senior Management within the Bank, over a prolonged period of time, to formulate and implement an effective plan capable of addressing the weaknesses identified in its AML and financial crime systems and controls.”

According to the declaration, Guaranty Trust Bank had actually been put on hold in Ghana, an adjoining West African nation, for numerous violations of fx procedures.

“Our investigation took us to the Bank of Ghana where we discovered that the Foreign Exchange Trading Licence of Guaranty Trust Bank Ghana Limited (GTB) was suspended for a period of 1 (One) month with effect from 18 March 2024.

“The Press Release dated 4 March 2024 indicates that the said Licence was suspended as a result of various breaches of the Foreign Exchange Market Regulations, including fraudulent documentation in foreign exchange operations.

“By the Press Release, the Bank of Ghana cautioned GTB to put in place effective controls to ensure strict adherence to the extant Regulations and Guidelines,” GICN kept in mind.

The team additionally questioned in the declaration why the GTBank presumably performed a number of offenses in Nigeria with no due assents to it.

The organisation mentioned: “One begins to wonder the number of infractions committed by GTB in its originating country – Nigeria without due sanctions from Regulatory Bodies and Anti-Corruption Agencies.

“We are certain that it is not too late for the Regulatory Bodies and Anti-Corruption Agencies to act by rescuing the soul of GTB. The time to act is now!”

In its suggestions, the team, in the PIR record, suggested that Governor of the Central Bank of Nigeria (CBN) ought to suddenly liquify the Board and Management of Guaranty Trust Bank Limited in order to enable complete examinations right into its motley claims versus the banks.

The record additionally supported the suspension of Segun Julius Agbaje as Group CHIEF EXECUTIVE OFFICER of Guaranty Trust Holding Company Plc and fetch from him all documents or files associating with Guaranty Trust Bank Limited to prevent disturbance with more query right into the problems elevated in the PIR.

According to the declaration, if condemned of Corporate Governance, the CBN as the financial field regulatory authority, combined with the Economic and Financial Crimes Commission (EFCC), Nigerian Financial Intelligence Unit (NFIU), Independent Corrupt Practices and Other Related Offences Commission (ICPC), Nigeria Police Force and Department of State Services (DSS) “should deal decisively with Segun Julius Agbaje and prosecute him like Mrs. Cecilia Ibru, who practically milked the defunct Oceanic Bank Plc dry before the Banks Consolidation era in Nigeria.”

Other suggestions made consist of that the Nigeria Deposit Insurance Corporation (NDIC), Securities and Exchange Commission (SEC), Nigerian Stock Exchange (NSE) in addition to Financial Reporting Council of Nigeria (FRCN) “should urgently step into the affairs of Guaranty Trust Bank Limited with a view to safeguarding customers/investors’ funds and portfolios before the Bank fails completely.”

The declaration similarly suggested the Nigerian Senate Committee on Banking, Insurance and Other Financial Institutions (OFIs), House of Representatives Committee on Banking in addition to House Committee on Banking Regulations need to collectively or separately assemble a Public Hearing, where at Segun Julius Agbaje will certainly be mobilized to show up and protect the ‘weighty allegations’ consisted of in our Private Investigation Report (PIR).”

GICN additionally advised the UK National Crimes Agency (NCA), Crown Prosecution Service (CPS), Financial Conduct Authority (FCA), Financial Ombudsman Service, British Prime Minister, Governor Bank of England, United States Department of Justice, United States Securities and Exchange Commission, Federal Bureau of Investigation (FBI), United States Federal Reserve Board (FRB), British High Commissioner to Nigeria and Governor Bank of Ghana to close down all procedures of Guaranty Trust Bank (GTB) in their areas.

“By so doing, GTB will be prevented from turning the United Kingdom, United States of America and Ghana into a safe haven for money laundering, terrorism financing and other sundry economic crimes.”

The declaration kept in mind: “That in addition to the above, UK National Crimes Agency (NCA), Crown Prosecution Service (CPS), US Department of Justice and Federal Bureau of Investigation (FBI) are requested to commence prosecution of Segun Julius Agbaje in line with appropriate laws for all the infractions he has used GTB to commit within the territories of both United Kingdom and USA.”