Zenith Bank Faces N70bn Money Laundering Scandal, Management’s Silence Fuels Speculation

In a developing financial scandal, Zenith Bank PLC, one of Nigeria’s prominent banking institutions, has come under scrutiny following allegations that Saadatu Ramallan Yaro, a senior female employee, laundered over N70 billion.

The Federal Government reportedly secured a forfeiture of N120 billion from her as part of a plea deal to avoid further criminal proceedings. This significant financial scandal raises serious questions about the internal controls and oversight within Zenith Bank, especially concerning high-value transactions linked to senior staff.

Saadatu, who is married to Aminu Yaro, the Sarkin Hausawa of Lagos, allegedly operated within a network involving high-profile figures, including former Central Bank Governor Godwin Emefiele, to exploit Nigeria’s foreign exchange system through fraudulent activities.

The Economic and Financial Crimes Commission (EFCC) traced billions to accounts associated with her in Zenith Bank, suspecting that the transactions were part of a broader, orchestrated forex fraud. A sizeable portion of these funds was linked to Tsami Babi Resources Limited, a company where Saadatu served as a director and signatory.

In May 2023, the EFCC arraigned Saadatu and her company before Justice Obiora Egwuatu at the Federal High Court in Abuja. The charges—spread across 25 counts—detailed her alleged failure to report substantial inflows to the Ministry of Commerce, in violation of money laundering laws.

Tsami Babi Resources Limited allegedly received over N100 billion in funds between 2021 and 2022, prompting questions about regulatory compliance and potential lapses in bank oversight. The charges also extended to other companies linked to Saadatu, including April 1616 Investment Limited and Amsamay Limited, as well as M.A.Y Fine Fragrance Limited, which was similarly implicated in laundering over N40 billion.

The Conclave, an investigative news platform, attempted to reach out to key figures in Zenith Bank to obtain clarification on management’s involvement or knowledge of the transactions. Ebenezer Onyeagwu, Zenith Bank’s former Managing Director, was contacted on September 26, 2024, but he has not responded to inquiries.

This silence has led to widespread speculation about the bank’s potential complicity or negligence in preventing such high-value transactions under its watch. Critics question whether it is feasible for a single bank staff member to orchestrate transactions of this magnitude without internal detection.

Further attempts were made to reach the bank’s Corporate Communications department, specifically Ayoola Ayoola Kusimo, who was approached through multiple channels on November 7, 2024.

Over 24 hours later, Kusimo had not provided any response, leading to public concerns about a possible “deliberate silence” by Zenith Bank on the matter. Industry analysts suggest that the bank’s reluctance to address these inquiries publicly could reflect a deliberate attempt to avoid reputational damage.

As the case unfolds, stakeholders are calling for rigorous scrutiny of Zenith Bank’s internal controls, compliance standards, and regulatory oversight mechanisms. Observers note that Saadatu’s alleged activities were executed under the former leadership, raising questions about potential complicity or oversight lapses that may have enabled the laundering scheme.
The incident highlights the broader challenges Nigerian banks face in implementing effective anti-money laundering practices amidst rising financial crime risks.

With public confidence in the bank’s operations potentially at stake, calls for transparency and accountability are growing louder. Financial regulators and Zenith Bank’s leadership may soon face increased pressure to address these allegations transparently, clarify their internal processes, and take corrective measures if lapses are identified.