The Central Bank of Nigeria (CBN) has introduced stricter penalties, including a N10 million fine and withdrawal of cheques from circulation, for commercial banks that engage unaccredited cheque printers or personalisers.
The directive was contained in the apex bank’s revised sanctions framework for defaulters of the Nigeria Cheque Standard (NCS) and the Nigeria Cheque Printers’ Accreditation Scheme (NICPAS).
Under the updated regime, any bank found to have engaged an unaccredited commercial cheque printer or personaliser, either as reported by accredited operators or uncovered during a CBN/MTIC audit—will face withdrawal of the affected cheques from circulation and a N10 million fine. A repeat offence will attract withdrawal of cheques and a stiffer N20 million penalty.
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The CBN also stipulated that failure or refusal to submit personalised cheque samples for testing and analysis, where required, will attract a N5 million fine.
Additionally, banks that fail to properly encode cheques or meet mandatory security and quality standards will be fined N10,000 per non-compliant instrument.
In a circular signed by the Director of the Banking Services Department, Mr. Hamisu Abdullahi, the CBN recalled that it first issued sanctions guidelines for defaulters of the Nigerian Cheque Standards and NICPAS in 2019.
The bank explained that the review of the sanction grid was necessary to align with current realities in the banking industry and to strengthen the efficiency and safety of the Nigeria 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 aforementioned Sanction Grid to reflect the current realities in the banking industry,” the circular stated.
The apex bank directed all commercial banks and accredited cheque printers to comply with the revised sanctions under NCS/NICPAS 2.0, noting that the measures are aimed at enhancing security, quality control and public confidence in cheque transactions.
