CBN Office, Lagos
BusinessHighlight

Illicit mint naira sale: CBN slaps N150m fine on erring banks

“CBN will continue to intensify the periodic spot checks to the banking halls/ATMs to review cash payouts to banks’ customers, as well as mystery shopping to all identified cash hawking spots across the country

470
The Central Bank of Nigeria (CBN) has introduced a strict measure to combat the illicit trade of new naira notes, imposing a hefty fine of N150 million.

This move aims to prevent the abuse and illegal sale of mint naira notes, ensuring the currency’s integrity and value.

In a circular issued on Friday, December 13, 2024, the apex bank warned that any Deposit Money Bank (DMB) found guilty of facilitating the illegal flow of mint naira notes to currency hawkers and unscrupulous agents will be fined N150 million per branch.

The CBN expressed concern about the increasing prevalence of mint naira notes being traded by hawkers, which impedes efficient and effective cash distribution to customers and the general public.

To address this issue, the apex bank has intensified measures, including periodic spot checks in banking halls and ATMs, as well as deploying mystery shoppers to uncover illicit cash hawking spots across the country.

The CBN has urged DMBs to strengthen controls, processes, and procedures around their Cash Management Centres, branches, and teller operations to prevent their systems from being exploited for illegal transactions.

The circular read: “The CBN has noted with dismay the prevalence of illicit flow of mint banknotes to currency hawkers and other unscrupulous economic agents that commodify Naira banknotes, thus impeding efficient and effective cash distribution to banks’ customers and the general public.

“CBN will continue to intensify the periodic spot checks to the banking halls/ATMs to review cash payouts to banks’ customers, as well as mystery shopping to all identified cash hawking spots across the country.

“In this regard, any erring deposit money banks or financial institutions that are culpable of facilitating, aiding, or abetting, by direct actions or inactions, the illicit flow of mint banknotes to currency hawkers and unscrupulous economic agents that commodify Naira banknotes shall be penalised at first instance N150,000,000.00 (One hundred and fifty million Naira) only, per erring branch, and at later instances, apply the full weight of relevant provisions of BOFIA 2020.”

Repeat offenders will face stricter sanctions under the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.

The move is part of the CBN’s efforts to ensure efficient and transparent cash disbursement, especially during the festive season.

The apex bank has also warned against cash hoarding, diversion, and other practices that hinder cash flow, stressing that such actions violate the Clean Note Policy.

Leave a comment

Related Articles

Nigeria’s Power Sector Faces Uncertainty Despite 34% Surge in Electricity Generation

Nigeria’s power sector is facing an existential crisis, despite a 34 percent...

African leaders must rebrand, reengineer governance to deliver results, says Prof. Falola

Renowned historian and academic icon Prof. Toyin Falola has urged African leaders...

Just in: NASS threatens to stop FG’s allocation to JAMB, queries N1.1bln spent on meals, refreshments

The National Assembly Joint Committee on Finance has threatened to stop the...

Chelle vows to make Super Eagles world’s good attacking force, qualifies Nigeria for World Cup

The Nigerian Football Federation (NFF) officially unveiled Eric Chelle as the new...

Updated: Mojisola Meranda takes oath as Lagos first female speaker

Following the impeachment of Speaker Mudashiru Obasa earlier on Monday, the Lagos...

Breaking: Murder: Court grants Ooni’s ex-wife, two others N10m bail each

An Oyo State High Court sitting at Ring Road, Ibadan, on Monday...

Just in: Gov. Makinde Presents Staff of Office to new Alaafin of Oyo, Owoade

Barely 48 hours after his appointment was announced, Gov. Seyi Makinde of...

Asake’s bold new style: Fans react to singer’s low-cut hair, multiple facial tattoos

Nigerian music sensation Asake has made headlines after resurfacing with a striking...

Spanish Super Cup: Flick’s Tactical Brilliance Powers Team to 5-2 Win Against Madrid

Barcelona claimed their first trophy in over a year, defeating arch-rivals Real...

‘Spursy’ Arsenal edge towards another trophy – less season, as Bayindir heroics secure victory for United

Manchester United pulled off a stunning comeback to defeat ‘Spursy’ Arsenal 5-4...

Earthquake Strikes Mexico with 6.2 Magnitude

A magnitude 6.2 earthquake occurred in southwest Mexico, according to the US...

Akwa Ibom hospitals accused of organ harvesting as NAPTIP reveals shocking child trafficking statistics

NAPTIP has made a shocking accusation against some medical centers and personnel...

2027: Rotational presidency non-negotiable, South will complete tenure – Laolu Akande

Former Presidential spokesman Laolu Akande firmly believes that Nigeria’s rotational presidency is...

TCN blames technical hitches for widespread power outages, rules out grid collapse

The Transmission Company of Nigeria (TCN) has attributed the intermittent power outages...

Naira abuse saga: EFCC invites billionaire businessman Razaq Okoya’s sons for questioning

The Economic and Financial Crimes Commission (EFCC) has summoned Subomi and Wahab,...

Tinubu off to Abu Dhabi for Sustainability Summit, returns Jan.16

President Bola Tinubu is set to depart Abuja on Saturday, January 11,...

Just in: Sen. Azuta Mbata elected new Ohanaeze President-General

Senator John Azuta-Mbata has made history as the newly elected 13th President-General...

Updated: Alison-Madueke: Nigeria to utilize $52.88m repatriated funds for rural electrification, counter-terrorism – AGF

Prince Lateef Fagbemi (SAN), Attorney-General of the Federation and Minister of Justice,...