CBN To Fine Banks ₦10 Million For Using Unaccredited Cheque Printers

The Central Bank of Nigeria (CBN) has introduced stiffer penalties for commercial banks that engage unaccredited cheque printers, imposing fines of up to ₦10 million and mandating the withdrawal of affected cheques from circulation.

The new sanctions are contained in a revised framework addressing violations of the Nigeria Cheque Standard (NCS) and the Nigeria Cheque Printers’ Accreditation Scheme (NIPAS 2.0). Eyes Of Lagos reports,

Under the updated rules, any bank found to have patronised an unapproved commercial cheque printer or personaliser will face significant penalties.

According to the apex bank, a first offence will attract the withdrawal of the affected cheques from circulation and a ₦10 million fine, while a repeat offence will result in a ₦20 million fine in addition to the withdrawal of the cheques.

The CBN further stated that banks which fail or refuse to submit personalised cheque samples for testing and analysis, where required, will be fined ₦5 million.

In addition, failure to properly encode cheques or comply with mandatory security and quality standards will attract a penalty of ₦10,000 per cheque instrument.

The revised sanctions were announced in a circular signed by the Director of the Banking Services Department, Mr Hamisu Abdullahi. The CBN recalled that it had earlier issued guidelines on penalties for breaches of the Nigerian Cheque Standards and the Cheque Printers’ Accreditation Scheme in 2019.

Explaining the reason for the review, the regulator said the move was part of its ongoing efforts to enhance efficiency and security within the Nigerian clearing system.

“In furtherance of the bank’s commitment to increase the efficiency and safety of the Nigeria Clearing System, it has become imperative to review the sanction grid to reflect current realities in the banking industry,” the CBN stated.

The apex bank added that the updated framework is designed to strengthen compliance, improve cheque security features, and safeguard the integrity of the nation’s payment and clearing system.