CBN Threatens N150mn Fine for Banks Facilitating Naira Black Market
By Patience Ikpeme
The Central Bank of Nigeria (CBN) has issued a stern warning to Deposit Money Banks (DMBs) and other financial institutions found culpable of facilitating the illicit flow of mint banknotes to currency hawkers and unscrupulous economic agents.
The apex bank in a circular issued on the 13th of December, 2024 has vowed to impose a hefty fine of N150 million on any erring institution, per branch, as a first instance penalty. Subsequent offenses will be subject to the full weight of relevant provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
The CBN expressed deep concern over the increasing prevalence of mint banknotes being diverted to currency hawkers, hindering the efficient and effective distribution of cash to legitimate customers.
To address this issue, the CBN will intensify its monitoring efforts through periodic spot checks of bank branches and ATMs, as well as mystery shopping at identified cash hawking locations across the country.
The apex bank has urged all financial institutions to strengthen their internal controls, processes, and procedures for cash management to prevent the illicit flow of banknotes.
