By Our Correspondent
The Central Bank of Nigeria (CBN), has imposed a N150 million fine per branch on Deposit Money Banks (DMBs), involved in the illegal circulation of freshly minted Naira notes to currency hawkers and unauthorized agents.
This action, announced in a circular dated December 13, 2024, aims to curb the growing issue of cash hawking, which undermines the country’s financial system.
The fine will apply to the first violation of any branch found to facilitate the distribution of mint notes to hawkers.
Further violations will attract harsher penalties in accordance with the Banks and Other Financial Institutions Act (BOFIA) 2020.
The CBN has also outlined plans for periodic checks on banking halls and ATMs to ensure compliance, with additional mystery shopping exercises to identify and expose non-compliant branches.
The CBN expressed deep concern over the illegal practice, which it stated erodes public trust in the financial system and hampers the proper distribution of cash.
In addition to the fines, banks are urged to enhance internal controls at Cash Management Centres, teller points, and branches to prevent misuse of cash distribution mechanisms.
This directive is part of the CBN’s broader strategy to ensure the integrity of Nigeria’s currency management and eliminate the commodification of the Naira.
Non-compliance with these measures will lead to severe penalties as the CBN continues to uphold the sanctity of the nation’s financial operations.
