The Central Bank of Nigeria (CBN) has announced revised and significantly tougher penalties for banks and cheque printers that violate the Nigeria Cheque Standard and the Nigeria Cheque Printers’ Accreditation Scheme, raising to as high as N10 million per infraction.

In a circular dated February 10 and signed by Hamisu Abdullahi, the Director of the Banking Services Department, the apex bank stated that the review became necessary to enhance the efficiency and safety of the Nigerian clearing system, in line with current realities in the banking industry.

The new sanctions replace the 2019 framework and introduce a tiered penalty structure based on the severity and frequency of violations.

Under the revised regime, banks that fail to submit personalised cheques for testing and analysis face an initial fine of N5 million. Operators caught engaging in unaccredited practices or applying unapproved seals will be sanctioned with fines ranging from N1,000,000 per infraction to N20,000,000 upon repetition.

The penalty mechanism also provides for escalation, with a minimum fine of N10,000 per instrument for various infractions.

For accredited cheque printers and personalisers, the sanctions are equally high. Those who fail to produce cheques properly or meet mandatory security standards face a warning and a fine of N1,000,000 for repeat violations.

One of the most severe penalties (N10,000,000 fine) applies to printers that produce unapproved security features and this amount applies to each security feature.

The circular also addresses broader systemic violations. Banks face fines of N2,000,000 for subcontracting cheque production to non-accredited printers or personalisers, while failure to request accreditation for cheque suppliers attracts similar penalties.

Additional sanctions target banks that fail to give mandatory notice regarding changes in suspension or cessation of operations.

Penalties for such lapses can reach N2,000,000 per infraction.

In cases where banks or printers introduce unapproved watermarked paper or engage in unauthorised activities, a fine of N2,000,000 applies, with the penalty doubling upon a repeated offence.

The document specified that suspension or licence revocation for a period of six months to three years may be imposed for persistent violation, alongside potential criminal prosecution under existing banking regulations.

The CBN emphasised that all deposit money banks and accredited cheque printers must comply with the new rules immediately.

The circular underscored the regulator’s commitment to maintaining the integrity of Nigeria’s payment systems and ensuring that cheque-related transactions meet international standards. (The Guardian)

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