The Central Bank of Nigeria (CBN) says banks facilitating the illicit flow of mint naira notes will face a N150 million fine per branch.
In a circular signed by the Acting Director of the Currency Operations Department, Solaja Olayemi, the CBN expressed concern over the illicit flow of mint banknotes to currency hawkers and unscrupulous economic agents.
This, according to the regulator, impedes the efficient and effective cash distribution to banks’ customers and the general public.
The apex bank said it would intensify spot checks at banking halls and Automated Teller Machines (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 bank or financial institutions that are culpable of facilitating, aiding or abetting, by direct actions or inactions, 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, per erring branch and at later instances apply the full weight of relevant provisions of BOFIA 2020,” the circular said.
The CBN urged all banks and financial institutions to strengthen their controls, processes and procedures around their cash management centres, branch, and teller operations.
On November 15, the bank directed banks to prioritise cash disbursement through ATMs.
The regulator said it commenced spot checks to ensure efficient and responsible cash disbursement to the public and prevent the disbursement of mint banknotes to persons hawking naira notes.
The CBN warned that banks disbursing naira notes to persons hawking the currency will be penalised.
The apex bank also warned that banks found engaging in cash hoarding, diversion, or any actions that hinder efficient cash distribution, “including violations of the Clean Note Policy, will incur appropriate sanctions”.
