Naira Hawks Beware: CBN Imposes ₦150 Million Penalty On Banks Involved In Illicit Trade

Naira Hawks Beware: CBN Imposes ₦150 Million Penalty On Banks Involved In Illicit Trade

The Central Bank of Nigeria (CBN) has imposed a ₦150 million fine on Deposit Money Banks (DMBs) caught supplying newly minted naira notes to currency hawkers. This measure is part of the bank’s efforts to combat the illegal trade of naira notes…Naira Hawks Beware: CBN Imposes ₦150 Million Penalty On Banks Involved In Illicit Trade

and ensure proper distribution to the public.

This move follows the CBN’s clarification that the old ₦1000, ₦500, and ₦200 notes remain legal tender, as confirmed by a Supreme Court ruling on November 29, 2023. The CBN has also warned against cash hoarding and highlighted the challenges posed by the illicit sale of new naira notes by hawkers, which disrupt the smooth circulation of currency.

In an official statement, the CBN expressed its concern about the growing prevalence of such practices, which hinder access to cash for Nigerians and businesses. As part of its enforcement strategy, the bank will increase spot checks on banking halls and ATMs, while deploying “mystery shoppers” to identify hawking locations.

Any bank branch found guilty of facilitating this illegal activity will be fined ₦150 million initially, with more severe penalties for repeat offenses under the Banks and Other Financial Institutions Act (BOFIA) 2020. The CBN has called on financial institutions to strengthen their internal controls to prevent exploitation for illegal transactions related to currency.

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