Banks found guilty of releasing new notes to currency hawkers will henceforth pay a fine of N150million, according to a circular sent by the apex bank to all commercial banks.
The Central Bank of Nigeria has announced a fine of N150 million on Deposit Money Banks found guilty of giving out illegal flow of mint naira notes to currency hawkers across the country.
The circular signed by the Acting Director of the Currency Operations Department, Mohammed Olayemi on Friday, stated that the new naira notes being traded by hackers at events and parties has become a source of worry to the CBN as it has prevented the public from having access to new notes from the deposit banks.
It warned that any commercial bank found guilty of the offence will face a penalty of N150m for the first violation while further violations of the directive would result in stricter sanctions for such financial institutions.
As part of measures to checkmate banks from going against the directive, the circular stated that officials of the apex bank will make periodic visits to banking halls and ATMs while deploying mystery shoppers to uncover illicit cash hawking spots across the country.
“The CBN has noted with dismay the prevalence of illicit flow of mint banknotes to currency hawkers and other unscrupulous economic agents that commodify Naira banknotes, thus impeding efficient and effective cash distribution to banks’ customers and the general public.
CBN will continue to intensify the periodic spot checks to the banking halls/ATMs to review cash payouts to banks’ customers, as well as mystery shopping to all identified cash hawking spots across the country.
In this regard, any erring deposit money banks or financial institutions that are culpable of facilitating, aiding, or abetting, by direct actions or inactions, the illicit flow of mint banknotes to currency hawkers and unscrupulous economic agents that commodify Naira banknotes shall be penalised at first instance N150,000,000.00 (One hundred and fifty million Naira) only, per erring branch, and at later instances, apply the full weight of relevant provisions of BOFIA 2020, ” the circular read.