CBN Fines Bank 150M Naira for illegal Dealings with Cash Hawkers.
The Central Bank of Nigeria (CBN) is taking a strong stance against the abuse of naira notes.
Announcing a fine of N150 million per branch for Deposit Money Banks (DMBs) found guilty of facilitating the illegal flow of mint naira notes to currency hawkers and unscrupulous agents.
The apex bank disclosed this in a circular issued on Friday, December 13, 2024, signed by the Acting Director of the Currency Operations Department, Mohammed Olayemi.
The CBN’s Concerns: Illicit Flow of Mint Naira Notes.
The CBN has expressed concern over the increasing prevalence of mint naira notes being traded by hawkers.
A practice that impedes efficient and effective cash distribution to customers and the general public.
The Central Bank of Nigeria actively determines to address the commodification of the naira and issues a directive to achieve this goal.
Penalties for Non-Compliance: N150m Fine and Stricter Sanctions.
Under the directive, any branch of a financial institution found culpable will face a penalty of N150 million for the first violation.
Subsequent infractions will attract stricter sanctions under the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
Measures to Ensure Compliance: Spot Checks and Mystery Shopping.
To ensure compliance, the CBN will increase periodic spot checks in banking halls and ATMs.
while deploying mystery shoppers to uncover illicit cash hawking spots across the country.
The CBN’s Warning: Cash Hoarding and Diversion Will Attract Stiff Penalties.
The CBN has also warned DMBs against cash hoarding, diversion, and other practices that hinder cash flow.
Stressing that such actions violate the Clean Note Policy.
Defaulters will face appropriate sanctions, which may include additional fines or other regulatory actions.
The CBN’s Commitment to Protecting the Naira.
The CBN’s announcement is a clear indication of its commitment to protecting the naira and ensuring its efficient distribution to the public. The Central Bank of Nigeria actively designs and implements measures to prevent the abuse of naira notes and promote a stable financial system.
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