COTONOU, Benin — Benin’s parliament has adopted a new law strengthening penalties against currency counterfeiting and the refusal of valid CFA franc banknotes and coins, in a move officials say is aimed at protecting public confidence in the West African monetary system.
The reform targets traders, service providers and individuals who reject notes or coins issued by the Central Bank of West African States, known as BCEAO, including currency that is slightly worn, crumpled or damaged but still legally valid. Authorities say such refusals have caused delays in daily transactions and created unnecessary disputes in markets, shops and transport services.
Under the law, anyone who refuses legal tender or charges excessive fees to exchange valid notes and coins may face fines and possible prison terms. Benin Web TV reported that refusal of valid CFA franc currency could attract fines ranging from 100,000 to 500,000 CFA francs, while those who demand improper fees to provide change or exchange banknotes risk one to three years in prison and fines of up to three million CFA francs.
The law also introduces tougher punishment for counterfeiting. People convicted of producing or falsifying banknotes and coins now face prison sentences of 10 to 20 years. They may also be fined up to 10 times the value of the seized counterfeit currency, with a minimum penalty of 20 million CFA francs, or about $35,550.
Those who knowingly transport, possess, import or circulate counterfeit currency face prison sentences of five to seven years. Officials say the aim is to strengthen the fight against fake banknotes while modernising sanctions to reflect new forms of financial crime.
The president of parliament’s Finance Committee said the reform aligns Benin’s domestic laws with its obligations under the West African Monetary Union and BCEAO guidelines. The CFA franc is the common currency used by Benin and other members of the monetary union, making trust in its circulation essential for trade and financial stability.
Benin’s Ministry of Economy and Finance had previously reminded citizens that worn or crumpled BCEAO notes and coins remain legal tender and can be exchanged free of charge at BCEAO counters.
Officials hope the new law will reduce transaction blockages, discourage informal exchange fees and reassure consumers that valid currency must be accepted across the country.
The legislation comes as West African governments seek to improve financial integrity, combat fraud and protect confidence in regional monetary systems. For ordinary citizens, the measure is expected to make everyday payments smoother, especially in markets and rural areas where damaged notes are often rejected.
