A civic group, Global Integrity Crusade Network (GICN), on Tuesday staged a protest at the National Assembly complex in Abuja, raising allegations of fraud, financial misconduct, and large-scale corruption against Guaranty Trust Bank Limited, a subsidiary of Guaranty Trust Holding Company Plc (GTCO).

The group alleged that under the leadership of Segun Julius Agbaje, the bank engaged in several unlawful activities, including opening accounts without customer consent, declaring fictitious profits, and engaged in money- laundering and terrorism-financing. 

GICN also accused the bank of using customer and investor funds to pay penalties in the United Kingdom. GICN claimed its findings were part of a Private Investigation Report (PIR) based on Section 24 (d) and (e) of Nigeria’s 1999 Constitution.

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Alleged unsolicited account openings by GTB

One of the key accusations in the report is that Guaranty Trust Bank has been engaging in unsolicited account openings, a practice GICN describes as unethical and dangerous. According to the group’s findings, over 10,000 customers have accounts opened in their names without their consent, leaving them vulnerable to identity theft and financial crimes.

“This is not only a violation of data privacy but also a clear act of identity theft,” said Ogorry. “The bank is putting innocent customers at risk by opening these accounts without their knowledge.”

The report also claims that the motive behind these unsolicited accounts is to artificially inflate the bank’s customer base and give a false impression of the bank’s financial strength.

Fictitious profit declarations and round-tripping allegations

In addition to the unsolicited accounts, GICN accused GTB of fabricating financial statements to deceive the public and investors. According to GICN, the bank declared a profit of over ₦1 trillion for the period ending June 30, 2024, but the group claims these figures were manipulated through deceptive practices like round-tripping—moving funds in and out of the bank to create an illusion of legitimate transactions.

“The figures do not reflect the true financial position of the bank,” Ogorry said. “It’s clear that these statements were put together to mislead the public, investors, and regulatory bodies into believing the bank is doing well when it’s actually engaging in questionable activities.”

GICN further noted that the profit figures had been widely reported in the media, hailing GTB as the first Nigerian financial institution to surpass ₦1 trillion in profit, an achievement the group claims is rooted in fraudulent accounting practices.

International sanctions and penalties

The civic group’s investigation also uncovered multiple sanctions imposed on GTB’s operations outside Nigeria, particularly in the UK and Ghana. According to the PIR, Guaranty Trust Bank (UK) Limited was fined £525,000 by the Financial Conduct Authority (FCA) for failing to prevent and detect money laundering between 2008 and 2010. The bank was also hit with a £7.6 million fine in 2023 after receiving a 30% discount for early resolution of the case.

“Agbaje failed to disclose the heavy penalties GTB has incurred abroad,” GICN’s report noted. “These sanctions clearly show the bank’s lack of effective anti-money laundering measures.”

In Ghana, GICN reported that the Bank of Ghana suspended GTB’s foreign exchange trading licence in March 2024 due to fraudulent documentation in foreign exchange operations. The group expressed concern over why similar sanctions have not been imposed on the bank in Nigeria despite its numerous infractions.

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Calls for action and investigation

GICN called for the immediate dissolution of the Board and Management of Guaranty Trust Bank Limited by the Central Bank of Nigeria (CBN) to enable a thorough investigation. The group also urged the suspension of Segun Agbaje as the Group CEO of GTCO, with all documents relating to the bank retrieved from him to prevent interference in the investigation.

The civic group further recommended that Nigerian and international agencies, including the Economic and Financial Crimes Commission (EFCC), Nigeria Police Force, and UK’s National Crimes Agency (NCA), begin a comprehensive investigation into GTB’s activities.

GTB rebuffs fraudulent allegations

GTB has rebuffed allegations of unethical business practices and financial misrepresentation raised by GICN.

The commercial bank denied the claims, describing them as “baseless allegations against the Group’s business activities and its executive management.”

The financial institution said that it was not under any regulatory scrutiny and vowed to take legal action against the group. 

“GTCO Plc has taken swift and decisive legal actions against the various sources of these false reports,” the statement read. “We will continue to use the full extent of the rule of law available to safeguard our reputation.”