Banks to pay N10m fine for using unaccredited cheque printer
Central Bank of Nigeria Fines Banks for Using Unaccredited Cheque Printers
The Central Bank of Nigeria (CBN) has imposed a fine of N10 million on commercial banks that engage unaccredited cheque printers and personalisers. Additionally, these banks risk having cheques withdrawn from circulation under the new sanctions regime outlined by the apex bank.
CBN announced these measures in a revised circular regarding compliance with the Nigeria Cheque Standards and the Nigeria Cheque Printers’ Accreditation Scheme (NICPAS). The new regulations stipulate that any bank found using unaccredited services will incur a fine, with the penalty for a repeat offence escalating to N20 million.
In the circular, signed by Hamisu Abdullahi, the Director of the Banking Services Department, CBN detailed other sanctions. Banks that fail to submit personalised cheque samples for testing may face a fine of N5 million. Moreover, a penalty of N10,000 will be charged per instrument for failures to encode cheques accurately or adhere to required security and quality standards.
CBN highlighted its ongoing efforts to enhance the efficiency and security of Nigeria’s clearing system, stating that the revision of the Sanction Grid reflects the current banking landscape. The updated sanctions are intended to provide clearer guidelines for both banks and accredited cheque printers.
The revised sanctions come nearly four years after the CBN initially issued a circular on this topic in 2019, emphasizing the need for ongoing compliance with established cheque standards.
For further information, please refer to the original article on Vanguard News.
