The Central Bank of Nigeria recently announced a stringent measure against Deposit Money Banks involved in the illicit trade of mint naira notes to currency hawkers and unscrupulous agents. The bank stated that a penalty of N150 million per branch would be imposed on any financial institution found guilty of this practice. The apex bank aims to deter the commodification of the naira and ensure the efficient distribution of cash to the public.
To enforce compliance, the CBN will conduct more frequent spot checks at banking halls and ATMs and deploy mystery shoppers to identify illegal cash trading spots nationwide. The directive emphasizes that first-time offenders will face the N150 million penalty, with stricter sanctions under the Banks and Other Financial Institutions Act for subsequent violations.
Deposit Money Banks were urged to enhance controls in their Cash Management Centres, branches, and teller operations to prevent exploitation for illegal activities. The CBN is intensifying efforts to discourage cash hoarding and diversion, with penalties for banks found engaging in unauthorized cash transactions or violating the Clean Note Policy.
In conclusion, the CBN’s crackdown on the illegal flow of mint naira notes aims to uphold the integrity of the currency and ensure transparent cash distribution across the country.