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According to CBN, any financial institution found to be aiding in the unlawful distribution of these notes faces a fine of N150 million for each branch.
This directive was outlined in a circular signed by Solaja Olayemi, acting director of the CBN’s Currency Operations Department.
The circular expressed serious concern over the diversion of new naira notes to currency hawkers and other unscrupulous agents, describing the practice as disruptive to the proper distribution of cash to the public and bank customers.
The circular stated, “In this regard, any erring deposit money banks or financial institutions that is culpable of facilitating, aiding or abetting, by direct actions or inactions, illicit 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.”
To curb the illegal practice, the CBN has ramped up enforcement measures, including spot checks at banking halls, ATMs, and mystery shopping at locations linked to currency hawking. The CBN says these initiatives are meant to make sure banks stay in compliance and do not give new naira notes to unauthorized people.
Additionally, the apex bank emphasized how crucial it is for banks to improve their internal controls, especially when it comes to branch cash management and teller operations.
Also, the regulator reminded banks of its November 15 directive prioritising ATM cash withdrawals and warned against actions such as cash hoarding or violations of the Clean Note Policy, stressing that severe penalties would be imposed for infractions.
