Business
Panic withdrawals from Fidelity over Diezani’s $115m funds
Following news that broke that the EFCC is investigating $115 million funds lodged in Fidelity Bank Plc by a former Minister of Petroleum Resources, Diezani Alison-Madueke, and allegedly used to bribe INEC officials, some customers of the bank have begun to move out their funds for safe-keeping elsewhere.
Investigation by Ripples Nigeria reveals that there are panic withdrawals by customers across some of the bank’s branches which were also triggered by more reports that the anti-graft agency had arrested a number of the banks’ top officials for questioning.
There were also speculations that the Central Bank of Nigeria (CBN) may also apply sanctions on Fidelity Bank if it is found to have committed an infraction.
Financial institutions are required by the Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) Regulations, 2013 (as amended) to forward their AML/CFT Compliance Manual to the CBN for off-site review of the document as well as carry out enhanced customer due diligence for high risk customers and effective Know Your Customer (KYC) processes.
Checks by Ripples across some of Fidelity Bank’s branches in Lagos metropolis and its environs showed that a lot of customers aware of the searchlight on the bank by the security agencies were busy withdrawing their funds.
Read also: CBN may sanction Fidelity Bank over $115m Diezani fund
An inside source also revealed that there has also been an unusual movement of funds and transfers by electronic means by customers of Fidelity to other banks.
When contacted Ejike Ndiulo, the bank’s Head of Corporate Communications said he was not the right person to comment on the matter.
It may be recalled that operatives of the EFCC had arrested the bank’s Managing Director and Chief Executive Officer, Nnamdi Okonkwo, and some officials for allegedly receiving $115 million from Mrs. Alison-Madueke.
The EFCC also arrested the bank’s Head of Operations, Martins Izuogbe, for his role in the alleged scam, which the anti-graft agency described as unprecedented.
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