Sterling Bank indicted over alleged money laundering, financial misconduct

The Nigeria Police have indicated Sterling Bank in an alleged case of money laundering, fraudulent deductions, and other financial misconduct by its staff.

This was disclosed during a hearing held by the House of Representatives Committee on Public Petitions in Abuja.

The investigation follows a petition by Maiden Systems Ltd against Sterling Bank, the Central Bank of Nigeria (CBN), and Shell Petroleum.

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The petition alleged the mismanagement of funds, unauthorized debits, and misappropriation of money from Maiden Systems Ltd’s accounts with the bank.

Representatives of the Inspector General of Police, Chief Superintendent Kabiru Yahaya and CSP Sunny Amison, presented findings to the committee, claiming the bank could not adequately counter the allegations.

“We were tasked with investigating the mismanagement, fraudulent debit, and misappropriation of funds from Maiden Systems Ltd’s accounts at Sterling Bank,” CSP Yahaya explained. “Our findings revealed non-issuance of account statements, questionable debits, and other irregularities. Importantly, Maiden Systems Ltd raised concerns about the handling of their four accounts—two U.S. dollar accounts and two NGN accounts.”

Yahaya further noted discrepancies in how funds were handled, stating, “We discovered a Debt Service Repayment Account (DSRA) used to service a $30 million loan. About $28.3 million was debited from Maiden Systems’ accounts for loan repayment without clear explanations or documentation.”

Highlighting specific transactions, CSP Amison revealed, “On September 29, 2016, $2.413 million was debited. Similarly, $1.256 million was withdrawn on November 14, 2016, and $28.3 million on January 16, 2017, all for loan repayments. The bank has failed to provide sufficient evidence or clarification for these debits.”

The investigators also raised concerns about potential money laundering linked to the movement of funds, emphasizing gaps in documentation and accountability.

“The bank’s own statements corroborate allegations of financial mismanagement, fraudulent debits, and possible money laundering,” Amison added.

In response, the Chairman of the Committee, Mike Etaba, assured both parties that the committee would thoroughly review the report.

“We will study the findings and ensure justice is served,” Etaba stated.