The Central Bank of Nigeria, CBN, has imposed a fine of N150m on banks or financial institutions that release new Naira Notes to cash hawkers, thereby disrupting effective cash distribution.
In a statement signed by the Acting Director, Currency Department, Solaja Mohammed J. Olayemi, the Apex banks said it has noted with dismay the prevalence of illicit flow of bank mint notes and its impedance on efficient and effective cash distribution to banks’ customers and the general public.
The CBN will continue to intensify its periodic spot check on the banking halls and ATMs to review cash payouts to banks’ customers, as well as mystery shopping to all identified cash hawking spots, across the country, the statement reads.
“In this regard, any erring deposit money banks or financial institution 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 commodity Naira banknotes shall be penalized at first instance N150, 000, 000.00 (One hundred and fifty million Naira) only, per erring branch and at latter instance apply the full weight of relevant provisions of BOFIA 2020.”
The Apex bank also called on all DMBs and financial institutions to strengthen controls, processes, and procedures around their Cash Management Centres.
