The Central Bank of Nigeria (CBN) has issued a stern warning to financial institutions involved in the illegal distribution of newly minted naira notes, imposing a hefty fine of N150 million per offending branch.
The apex bank’s warning was contained in a circular signed by the Acting Director of Currency Operations, Solaja Olayemi, who expressed concern over the diversion of fresh banknotes to currency hawkers and unscrupulous agents.
The CBN described the practice as a threat to the equitable distribution of cash to bank customers and the general public.
“Any deposit money bank or financial institution found culpable of facilitating, aiding, or abetting the illicit flow of mint naira notes to hawkers or economic agents will face an initial penalty of N150 million per branch.
Repeat offenders will face the full weight of the Banking and Other Financial Institutions Act (BOFIA) 2020,” the circular stated.
In a bid to address the issue, the CBN announced intensified spot checks in banking halls, ATMs, and areas notorious for currency hawking. These measures, the bank noted, are designed to ensure strict compliance with cash management regulations.
The apex bank also mandated financial institutions to strengthen internal controls in cash handling, particularly at branch level and during teller operations, to prevent any diversion of currency.
Additionally, banks were reminded of the directive issued on November 15, which prioritizes ATM cash withdrawals and emphasizes the proper disbursement of naira notes in line with the CBN’s Clean Note Policy.
Severe Penalties for Violators
The circular reiterated that banks engaging in hoarding, diversion, or any other practices that impede the smooth flow of currency would face severe consequences. Violations of the Clean Note Policy, according to the CBN, will also attract stringent penalties.
The CBN’s move comes amid public outcry over the availability of newly minted naira notes in the informal market, where currency hawkers openly trade the notes at a premium. The apex bank reaffirmed its commitment to maintaining the integrity of the naira and ensuring equitable access to currency for all Nigerians.
Financial institutions are now on notice as the apex bank ramps up efforts to curb the illegal flow of naira notes and enforce compliance with established cash management standards.
'
'
'
'Do you want to share a story with us? Do you want to advertise with us? Do you need publicity for a product, service, or event? Contact us on WhatsApp +2348183319097 Email: platformtimes@gmail.com
We are committed to impactful investigative journalism for human interest and social justice. Your donation will help us tell more stories. Kindly donate any amount HERE
