The Central Bank of Nigeria (CBN) has said that banks aiding the sale of mint notes to currency hawkers will be fined N150m and the apex bank may invoke punitive measures in line with the Bank and Other Financial Institutions Act, 2020.
The penalties are contained in a circular issued by the apex bank titled, “Updated Penalty on Inappropriate Cash Disbursement Practices by Deposit Money Banks (DMBs),’ seen by THE WHISTLER.
The circular was signed by CBN’s Acting Director, Currency Operations Department, Solaja, Mohammed J. Otayemi.
The development follows the flooding of currency hawkers selling naira notes at exuberant prices.
THE WHISTLER understands that a wrap of N200 mint is sold for N4000 to N5000 at the illicit market.
The apex bank said it “Noted with dismay the prevalence of illicit flow of mint banknotes to currency hawkers and other unscrupulous economic agents that commodity naira banknotes, thus, impeding efficient and effective cash distribution to banks’ customers and general public.”
The regulator said it will increase surveillance at ATM machines and bank halls to monitor and sanction erring banks
CBN said, “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.”
The apex bank further disclosed that it would take measures, including fining banks N150m.
CBN said, “In this regard, any erring deposit money banks or financial institutions that is culpable of facilitating, aiding or abetting, by direct actions or inactions, illicit flow of rnint banknotes to currency hawkers and unscrupulous economic agents that commodify naira banknotes, shall be penalised at first instance N150m only, per erring brank and at later instances apply the full weight of relevant provisions of BOFIA 2020.
“Therefore, CBN enjoins all DMBs and financial institutions to strengthen controls, processes, and procedures around their Cash Managements Centres, Branch and Teller Operations.”
CBN To Impose N150m Fine On Banks Selling Naira To Currency Hawkers is first published on The Whistler Newspaper