The Central Bank of Nigeria (CBN) has imposed a N10 million fine and withdrawal of cheques from circulation on commercial banks that engage unaccredited cheque printers or personalisers.
The directive was announced as part of the apex bank’s revised sanctions regime for defaulters of the Nigeria Cheque Standard (NCS) and the Nigeria Cheque Printers’ Accreditation Scheme (NICPAS).
According to the CBN: “Offence of engagement of unaccredited commercial cheque printer/personaliser by commercial banks as reported by accredited cheque personalisers/printers or via CBN/MTIC audit will attract withdrawal of cheques from circulation and N10 million fine; withdrawal of cheques from circulation and N20 million fine for a repeat defense
“Failure/ refusal to submit personalized cheque samples for testing and analysis (where applicable) will attract a N5 million fine.
“Failure to encode cheques properly or meet the mandatory security and quality standards will attract a fine of N10,000 per instrument.”
In a circular announcing the updated sanctions, signed by the Director of the Banking Services Department, Mr. Hamisu Abdullahi, the CBN recalled issuing a similar circular in 2019 targeting defaulters under the Nigerian Cheque Standards and NICPAS framework.
“In furtherance of the bank’s commitment to increase the efficiency and safety of the Nigeria Clearing System, it has become imperative to review the aforementioned Sanction Grid to reflect the current realities in the banking industry.
In furtherance of the bank’s commitment to increase the efficiency and safety of the Nigeria Clearing System, it has become imperative to review the aforementioned Sanction Grid to reflect the current realities in the banking industry.
“In view of this, the bank hereby stipulates the attached, as revised sanctions to erring banks and Accredited Cheque Printer/Cheque Personalizers for infringements of NCS/NIPAS 2.0. Please be guided accordingly,” the CBN added.
The revised measures are aimed at strengthening compliance and enhancing the integrity of the nation’s cheque clearing system.
