The Central Bank of Nigeria (CBN) has introduced tougher penalties for banks that violate cheque printing and personalization standards.
In a circular signed by Hamisu Abdullahi, Director of the Banking Services Department, the apex bank announced fines of up to ₦20 million and withdrawal of cheques from circulation for repeat offenders.
“Engagement of unaccredited commercial cheque printer/personaliser by commercial banks as reported by accredited cheque personalisers/printers or via CBN/MTIC audit will attract withdrawal of cheques from circulation and ₦10 million fine; withdrawal of cheques from circulation and ₦20 million fine for a repeat offence,” the circular stated.
The new sanctions regime targets violations of the Nigeria Cheque Standard (NCS) and Nigeria Cheque Printers’ Accreditation Scheme (NICPAS).
Key penalties include:
- ₦10 million fine and cheque withdrawal for using unaccredited printers/personalizers.
- ₦20 million fine for repeat offences.
- ₦5 million fine for failing to submit personalized cheque samples for testing.
- ₦10,000 fine per instrument for improper encoding or failure to meet mandatory security and quality standards.
The CBN recalled that it first issued sanctions on cheque defaulters in 2019. The latest revision, known as NCS/NICPAS 2.0, reflects current realities in the banking industry.
According to the CBN, the measures are designed to improve efficiency and safety in Nigeria’s clearing system.
“In furtherance of the bank’s commitment to increase the efficiency and safety of the Nigeria Clearing System, it has become imperative to review the aforementioned Sanction Grid to reflect the current realities in the banking industry,” the circular explained.
The apex bank emphasized that periodic reviews are necessary to maintain integrity, reduce fraud, and ensure compliance with global best practices.
By tightening oversight, the CBN may be hoping to strengthen confidence in Nigeria’s financial system and protect consumers from risks associated with substandard cheque processing.
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