Banks supplying mint naira notes to hawkers will pay N150m fine – CBN

The Central Bank of Nigeria (CBN) has issued a stern warning to banks involved in the illegal circulation of newly minted naira notes.

In a circular signed by Solaja Olayemi, Acting Director of the CBN’s Currency Operations Department, the apex bank expressed concern over the diversion of fresh naira notes to currency hawkers and unauthorised agents.

This malpractice disrupts the proper distribution of cash to customers and the general public, the CBN noted. The circular revealed that any bank found aiding the illicit flow of mint naira notes will face a fine of N150 million per branch.

Repeat offenders risk facing the full force of the Banking and Other Financial Institutions Act (BOFIA) 2020.

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Additionally, the CBN urged banks to enhance their internal controls, particularly regarding their cash management systems at branches and during teller operations.

The bank also reiterated its call for improved efficiency in cash disbursement, reminding financial institutions of its earlier directive on November 15, which prioritizes ATM cash withdrawals.

Furthermore, the CBN warned that banks engaging in cash hoarding, diversion, or any other actions that impede the proper distribution of currency, including violations of the Clean Note Policy, will face severe penalties.