The Central Bank of Nigeria (CBN) has imposed a N150 million penalty on Deposit Money Banks (DMBs) found engaging in the illegal distribution of freshly minted Naira notes to currency hawkers and unscrupulous agents.
Key Points:
1. Penalty: N150 million per branch for first-time offenders
2. Subsequent Violations: Stricter penalties under BOFIA 2020
3. Purpose: Prevent cash hawking and promote efficient cash distribution
4. Enforcement: Periodic spot checks and mystery shopping exercises
The CBN expressed concern over the rising trend of cash hawking, which undermines public confidence in the financial system. To address this, banks are urged to strengthen internal controls and cash management processes.
CBN’s Directive:
1. Strengthen Internal Controls: Prevent exploitation of cash distribution mechanisms
2. Secure Cash Distribution: Monitor and secure cash distribution processes
3. Non-Compliance: Severe consequences
The CBN’s move aims to uphold the sanctity of the Naira and promote efficient cash management across Nigeria.
Source: The Nation
