CBN hits banks with N10m fine over unaccredited cheque printers

The Central Bank of Nigeria (CBN) has introduced tougher penalties for commercial banks that patronise unapproved cheque printers, imposing fines of up to N10 million and ordering the withdrawal of affected cheques from circulation.

The new measures are contained in a revised sanctions framework targeting breaches of the Nigeria Cheque Standard and the Nigeria Cheque Printers’ Accreditation Scheme.

Under the updated regime, any bank found to have engaged an unaccredited commercial cheque printer or personaliser will face stiff penalties.

According to the apex bank: “Offence of engagement of unaccredited commercial cheque printer/personaliser by commercial banks as reported by accredited cheque personalisers/printers or via CBN/MTIC audit will attract withdrawal of cheques from circulation and N10 million fine; withdrawal of cheques from circulation and N20 million fine for a repeat offence.

“Failure/ refusal to submit personalized cheque samples for testing and analysis (where applicable) will attract a N5 million fine.

“Failure to encode cheques properly or meet the mandatory security and quality standards will attract a fine of N10,000 per instrument.”

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

The bank explained: “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 aforementioned Sanction Grid to reflect the current realities in the banking industry.

“In view of this, the bank hereby stipulates the attached, as revised sanctions to erring banks and Accredited Cheque Printer/Cheque Personalizers for infringements of NCS/NIPAS 2.0. Please be guided accordingly,” CBN added.

The regulator said the updated framework is aimed at strengthening compliance, improving cheque security features and safeguarding the integrity of the clearing system.