CBN To Impose N150m Fine On Banks Selling New Notes To Hawkers

The Central Bank of Nigeria (CBN) has imposed a fine of ₦150 million on Deposit Money Banks (DMBs) found guilty of aiding the illegal distribution of mint naira notes to currency hawkers.

CBN, in a circular issued on Friday and signed by Mohammed Olayemi, Acting Director of the Currency Operations Department, said it was concerned about the increasing prevalence of mint naira notes being traded by hawkers.

According to CBN, the practice disrupts the proper flow of cash to customers and the general public.

“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,” Olayemi said.

Olayemi noted that it 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.”

The apex bank, however, 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.