The Central Bank of Nigeria says it will impose a fine of N150m per branch on Deposit Money Banks found guilty of facilitating the illegal flow of mint naira notes to currency hawkers and unscrupulous agents.
The apex bank disclosed this in a circular issued on Friday, December 13, 2024, signed by the Acting Director of Currency Operations Department, Mohammed Olayemi.
The circular reads, “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.
“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.
“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 Bank warned that any DMB traced to seized cash from unauthorised hawkers would face financial penalties.
Such banks will be fined 10 per cent of the total value of cash withdrawn from the CBN on the day the offence was committed.
Repeat offenders will incur an additional five per cent penalty for each subsequent breach.
The CBN also warned against cash hoarding, diversion, and other practices that hinder cash flow, stressing that such actions violate the Clean Note Policy.
It noted that defaulters would face appropriate sanctions, which may include additional fines or other regulatory actions.
