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

164
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

Ghana 2024 Elections, ECOWAS and AES Juntas

by Paul Ejime Ghana has pulled off another feat in democratic consolidation...

Petroleum Resources Minister (Gas) lauds NNPC Ltd Over 50MW Maiduguri Emergency Power Project

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has commended...

IPI Nigeria re-elects Musikilu Mojeed as President, Shekarau Secretary

The Editor-in-Chief of Premium Times, Musikilu Mojeed and the CEO of the...

FG Sets December 16 for N120 Billion Bond Sale

The Federal Government, through the Debt Management Office (DMO), has announced plans...

Shettima Represents Tinubu in Dubai as Nigeria’s Oriental Energy Unveils $315m Oil Facility

Vice President Kashim Shettima has arrived at the Drydocks World Dubai Shipyard...

NNPC Ltd’s CNG awareness drive in Taraba sparks interest among park operators, drivers

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has taken its ongoing...

FG, states, LGs share whopping N1.727trn at November FAAC meeting

The Federal Accounts Allocation Committee (FAAC) has distributed a massive N1.727 trillion...

Stoppage of Rivers Allocations: Gov. Fubara Wins at Appeal Court

Rivers State Governor Siminalayi Fubara has secured a major victory as the...

Ndidi is Acting Controller-General of Nigerian Correctional Service

President Bola Tinubu has named Nwakuche Sylvester Ndidi as the Acting Controller-General...

Updated: ₦80.2bln fraud: Yahaya Bello remanded at Kuje prison pending ₦500m bail perfection

Justice Emeka Nwite of the Federal High Court in Abuja has granted...

Stop demolition of houses in FCT, Senate orders Wike

The Senate and the Minister of the Federal Capital Territory, Mr. Nyesom...

National Sports Commission Leadership Presents Progress Report to Pres. Tinubu

The leadership of the National Sports Commission (NSC) met with President Bola...

African of the Decade Award: Gov. Abiodun hails AfDB President Akinwunmi Adesina

Excited by the Forbes award, Ogun Gov. Dapo Abiodun has congratulated the...

Afe Babalola seeks to disbar Farotimi over defamatory allegation

Barely a day after a court ordered the halt of Dele Farotimi’s...

Just in: N80bln fraud charge: Ex-Kogi Gov. Bello enters ‘not-guilty’ plea

Yahaya Bello, the immediate past Governor of Kogi State, has entered a...

Officials Risk Jail Term for Aiding Diversion of Local Government Allocations – Justice Minister

The Federal Government has vowed to take criminal action against elected officials...

Ghana Hands Over Nigerian Abiola Kayode to US Authorities for Prosecution Over $6m Cybercrime

Abiola Kayode, a 37-year-old Nigerian and former FBI most wanted cyber criminal,...

Kano State Cabinet Reshuffle: Chief of Staff Office Scrapped, SSG, Five Commissioners Dropped

Kano Gov. Abba Yusuf has announced a major cabinet reshuffle, impacting key...

Justice, transparency : CJN advocates synergy between judiciary and media

The Chief Justice of Nigeria (CJN), Justice Kudirat Kekere-Ekun, has called for...

ECOWAS Launches $75m Renewable Energy and Energy Efficiency Facility

The Economic Community of West African States (ECOWAS) has finalized the framework...