CBN Revises Sanctions, Mandates N10m Fine for Cheque Standard Violations
The Central Bank of Nigeria (CBN) has issued a stringent revision to its sanction framework, imposing fines of up to ten million naira on banks and accredited printers for utilizing unapproved security features on cheques. This decisive regulatory move, detailed in a recent circular from the Bank’s Banking Services Department, aims to fortify the integrity and security of the national cheque clearing system.
The updated Sanction Grid for the Nigeria Cheque Standards (NCS) and the Nigeria Cheque Printers’ Accreditation Scheme (NICPAS) introduces escalated penalties for non-compliance. Beyond the significant fine for unauthorized security features, the grid stipulates fines of up to twenty million naira for repeat offences and includes potential suspension of accreditation or the withdrawal of non-compliant cheques from circulation. This policy framework, anchored in the CBN Act 2007, builds upon earlier modernization efforts initiated in 2019.
In its notice, the CBN underscored the critical need for strict adherence to established standards to safeguard financial transactions. The bank emphasized that the updated sanctions are designed as a deterrent to preserve confidence in the financial system. The directive also warns that operational changes by accredited entities without adequate prior notice could attract penalties, including possible suspension of accreditation. This clarification addresses previous misinterpretations by stakeholders and reinforces the CBN’s commitment to a secure financial environment, much like Tinubu’s security directive aims to stabilize other sectors of national interest.
The revised cheque standards have been operational since April 2021, with the CBN having previously directed Deposit Money Banks to educate their clients on the new formats. This latest enforcement action is expected to further strengthen the cheque clearing process, ensuring its efficiency and reliability for all users. The CBN’s action reflects a broader trend of regulatory tightening within Nigerian institutions, a context that also surrounds discussions on issues ranging from alleged property fraud to internal disputes such as when FUOYE accuses SSANU of certain grievances. These parallel narratives of governance and accountability continue to shape public discourse, even as the nation follows developments on matters like Nnamdi Kanu’s new legal proceedings. Ultimately, the CBN’s firm stance on cheque standards is a focused effort to bolster systemic trust, demonstrating that in finance, as in other areas of governance, established protocols must be rigorously upheld.
