Moruf Oseni’s Wema Bank Violates CBN Directives, Cybersecurity Law, Others

Moruf Oseni’s Wema Bank has violated CBN Directives and Cybersecurity Law among others.

Glamtush reports that Wema Bank Plc, commonly known as Wema Bank, one of the leading Nigerian commercial banks licensed by the Central Bank of Nigeria; the regulator of the nation’s banking sector violated 7 Nigerian laws in 2023 under the watch and leadership of its Managing Director/Chief Executive Officer, Moruf Oseni.

This news platform understands that these violations which cost WEMA bank a total penalty of N61.350 million in one year were revealed in the bank’s full-year 2023 financial statement.

The 2023 financial statement further revealed that the lender contravened a cybersecurity law, a section of the Bank and Other Financial Institutions Act (BOFIA) 2020, and the Central Bank of Nigeria (CBN) circulars on Know Your Customers, among others.

On the cybersecurity framework contravention, Wema Bank received a fine of N2 million, but the lender was fined N20 million for breaching Section 19(3A) of BOFIA, 2020.

Also, Wema Bank was made to pay N17.45 million for violating the CBN circulars on KYC.

The bank further paid a fine of N10 million for the late rendition of final returns. The CBN circulars on KYC were targeted at reducing money laundering and other forms of financial crimes.

“There is no doubt that having sufficient information about your customer and making use of that information is the most effective weapon against being used to launder the proceeds of crime.

In addition to minimizing the risk of being used for illicit activities, it provides protection against fraud, reputational and financial risks and enables individual financial institutions to recognize suspicious activities,” the CBN says in its KYC manual.

Similarly, the bank paid a penalty of N8 million for Risk-Based Supervision (RBS) breaches. The lender was likewise penalised for a regulatory breach on the CBN clearance, paying a fine of N2 million for the contravention.

For the late filing of its 2022 audited financial statements with the Nigerian Exchange Limited (NGX), the tier-2 lender was fined N1.9 million.

Fraud and burglary lower but still risks

Fraud and burglary are still big risks for the bank, which lost N256.387 million to them in 2023. However, this was far lower than N880.154 million lost by the bank in fraud and burglary cases in the corresponding period of 2022.

This would mean that the bank took some measures to tackle fraud and theft in 2023, said a credit risk analyst, Mr Osai Djemba.

Mr Djemba explained that the bank “must introduce artificial intelligence measures to reduce its exposure to theft to the barest minimum,” arguing that “sophisticated thieves and several criminals have infiltrated the Nigerian financial system to steal, kill and destroy.”

Complainants demand N10.8bn

Wema Bank left 9,974 complaints unresolved by December 2023. This is lower than 13,642 unresolved complaints reported in the corresponding period of 2022.

Various customers with these complaints demanded N10.843 billion from the lender over the issues.

The bank, however, refunded N11.258 billion to customers (apart from the N10.843 billion), the financial statement said.

“As a result of the initiatives stated earlier, the Bank successfully reduced the average time taken to resolve customer complaints by 60% compared to 2022, and the resolution rate increased from 93% to 98% demonstrating our commitment to improving the experience of our customers consistently and efficiently, the bank noted.

Glamtush reports that all these violations happened in one year (2023 financial year) under the leadership of Moruf Oseni who is currently the Managing Director/CEO of Wema Bank Plc. He joined Wema Bank in June 2012 as an Executive Director. Moruf Oseni was an Executive Director for six (6) years and Deputy Managing Director for over four (4) years before his elevation to MD/CEO.