CBN has announced a fine of N150 million on banks found facilitating illicit flow of mint naira notes.
Solaja Olayemi, the acting director of currency operations department, CBN expressed concern over the illicit flow of mint banknotes to currency hawkers and unscrupulous economic agents.
This, according to the regulator, impedes the efficient and effective cash distribution to banks’ customers and the general public.
The apex bank said it would intensify spot checks at banking halls and automated teller machines, 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 is culpable of facilitating, aiding or abetting, by direct actions or inactions, 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,” a circular from the apex bank read.
The CBN urged all banks and financial institutions to strengthen their controls, processes and procedures around their cash managements centres, branch, and teller operations.
On November 15, the bank directed banks to prioritise cash disbursement through ATMs.
The regulator said it commenced spot checks to ensure efficient and responsible cash disbursement to the public and prevent the disbursement of mint banknotes to persons hawking naira notes.
The CBN warned that banks disbursing naira notes to persons hawking the currency will be penalised.
The apex bank also warned that banks found engaging in cash hoarding, diversion, or any actions that hinder efficient cash distribution, including violations of the Clean Note Policy, will incur appropriate sanctions.
