Anti-Corruption Group Accuses GTBank of Fraudulent Practices, Including Unsolicited Account Openings and Misuse of Customer Funds

A civil society organization, the Global Integrity Crusade Network (GICN), has leveled serious allegations against Guaranty Trust Bank (GTBank), accusing the financial institution of engaging in fraudulent activities.

The GICN claims that GTBank has been involved in opening accounts without customer approval, misusing customer and investor funds to pay penalties in the United Kingdom, and engaging in round-tripping and fictitious profit reporting. 

The group has filed a lawsuit at the Federal High Court in Abuja, seeking to compel the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) to act on these allegations. The suit also requests the dissolution of GTBank's board and management to facilitate an independent audit of the bank's operations .

These allegations have surfaced amid previous concerns about GTBank's anti-money laundering (AML) practices. In January 2023, the Financial Conduct Authority (FCA) in the United Kingdom fined GTBank £7.6 million for serious weaknesses in its AML systems and controls between October 2014 and July 2019. The FCA noted that GTBank failed to undertake adequate customer risk assessments and did not monitor customer transactions to the required standard, despite repeated warnings .

In response to these allegations, GTBank has not issued a public statement. The outcome of the GICN's lawsuit and any subsequent regulatory actions remain to be seen. The case highlights ongoing concerns about transparency and accountability within Nigeria's banking sector.