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

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.