Revised sanctions target cheque security breaches, repeat violations to attract tougher penalties….
The Central Bank of Nigeria has introduced stricter penalties for commercial banks that use unaccredited cheque printers or personalises, imposing a ₦10 million fine alongside the withdrawal of affected cheques from circulation.
The directive forms part of the apex bank’s revised sanctions framework for violations of the Nigeria Cheque Standard and the Nigeria Cheque Printers’ Accreditation Scheme, aimed at strengthening the safety and efficiency of the country’s cheque clearing system.
According to the updated regime, any bank found engaging an unaccredited cheque printer or personaliser either through reports from accredited providers or regulatory audits will face the withdrawal of such cheques and a ₦10 million fine. A repeat violation will attract a harsher penalty of ₦20 million in addition to the withdrawal of the cheques from circulation.
The CBN also introduced other sanctions to enforce compliance. Banks that fail or refuse to submit personalised cheque samples for testing and analysis, where required, will be fined ₦5 million. In addition, improperly encoded cheques or those that do not meet mandatory security and quality specifications will attract a penalty of ₦10,000 per instrument.
The revised sanctions were communicated in a circular signed by the Director of Banking Services at the CBN, Hamisu Abdullahi. The apex bank recalled that it had earlier issued a sanctions framework in 2019 covering breaches of the Nigerian Cheque Standards and the accreditation scheme.
It explained that the review became necessary to reflect current developments in the banking sector and reinforce safeguards within the Nigeria Clearing System. The bank stated that the updated sanctions apply to both erring financial institutions and accredited cheque printers or personalisers that fail to comply with the prescribed standards.
The CBN said the move underscores its continued commitment to improving the security, reliability, and overall efficiency of cheque processing and settlement across Nigeria’s banking industry.
