CBN Imposes Up to N10 Million Fines for Cheque Security Violations in Nigeria Focus Keyphrase:
The Central Bank of Nigeria (CBN) has announced a major overhaul of penalties for banks and cheque printers that breach the Nigeria Cheque Standard and the Cheque Printers’ Accreditation Scheme, with fines now reaching as high as N10 million per violation. The move reflects the regulator’s effort to strengthen the security and reliability of the Nigerian clearing system.
In a circular dated February 10 and signed by Hamisu Abdullahi, Director of the Banking Services Department, the CBN explained that the revised sanctions replace the 2019 framework. They introduce a tiered structure where penalties vary depending on the severity and recurrence of the violation, ranging from initial warnings to multi-million naira fines for repeated breaches.
Under the new rules, banks that fail to submit personalized cheques for testing face an initial fine of N5 million. Operators using unaccredited practices or unapproved seals are liable for fines between N1 million and N20 million if offences are repeated. Accredited cheque printers and personalisers are also under strict scrutiny, facing fines of N1 million for repeated security lapses, while a N10 million penalty applies to each unapproved security feature produced.
Additional sanctions target broader systemic lapses. Banks subcontracting cheque production to non-accredited printers, or failing to notify the CBN of operational changes, face fines up to N2 million per infraction. Introducing unauthorized watermarked paper or engaging in unapproved activities can trigger the same penalty, which doubles if repeated. Persistent violators may face suspension, licence revocation of six months to three years, or criminal prosecution.
The CBN emphasized that all deposit money banks and accredited cheque printers must immediately comply with the updated regulations. The circular highlights the regulator’s commitment to safeguarding Nigeria’s payment infrastructure, ensuring that cheque transactions meet international security and operational standards.
source: The guardian