CBN imposes fine on Banks releasing mint notes to hawkers

December 15, 2024

The Central Bank of Nigeria (CBN) has announced a fine of N150 million on Deposit Money Banks found guilty of releasing mint naira notes to hawkers across the country.

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The move was after the apex bank addressed recent misinformation about the validity of the old N1000, N500, and N200 banknotes in circulation

Following the clarification, CBN in a circular signed by the Acting Director of the Currency Operations Department, Mohammed Olayemi on Friday, said it was concerned about the increasing prevalence of mint naira notes being traded by hawkers.

The circular, which referred to an earlier directive dated November 13, 2024, says any branch of a financial institution found culpable will face a penalty of N150m for the first violation.

“The CBN has noted with dismay the prevalence of !llicit 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 !llicit 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 CBN further urged DMBs to strengthen controls, processes, and procedures around their Cash Management Centres, branches, and teller operations to prevent their systems from being exploited for !llegal transactions.

CBN