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The Central Bank of Nigeria (CBN) has imposed a N10 million fine and withdrawn cheques from commercial banks found to be using unaccredited cheque printers or personalisers.
The action was announced in the apex bank’s revised sanctions regime for defaulters of the Nigeria Cheque Standard (NCS) and the Nigeria Cheque Printers’ Accreditation Scheme (NICPAS).
The circular was signed by Hamisu Abdullahi, Director of the Banking Services Department.
According to the CBN, banks that engage unaccredited printers or personalisers will face an N10 million fine and withdrawal of their cheques, with repeat offences attracting a N20 million fine.
Refusal to submit personalised cheque samples for testing and analysis will result in an N5 million fine, while cheques that are improperly encoded or fail mandatory security and quality standards will be fined N10,000 per instrument.
“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,” CBN said.
“Failure/refusal to submit personalised 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.”
Recall that in 2019, CBN published a circular on sanctions for noncompliance with the Nigerian Cheque Standards (NCS) and Nigeria Cheque Printers Accreditation Scheme (NICPAS).
“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 printers/cheque personalisers for infringements of NCS/NIPAS 2.0. Please be guided accordingly,” CBN added.
