The Central Bank of Nigeria has imposed a N10 million fine and ordered the withdrawal of cheques from circulation on commercial banks that engage unaccredited cheque printers or personalisers.

The apex bank announced this in its revised sanctions regime for defaulters of the Nigeria Cheque Standard and the Nigeria Cheque Printers’ Accreditation Scheme.

The CBN stated: “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.

“Failure/ refusal to submit personalized 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.”

The sanctions were detailed in a circular signed by the Director of the Banking Services Department, Mr. Hamisu Abdullahi.

The CBN recalled that it had previously issued a circular in 2019 on sanctions for defaulters of the Nigerian Cheque Standards (NCS) and Nigeria Cheque Printers Accreditation Scheme (NICPAS).

The apex bank explained: “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 Printer/Cheque Personalizers for infringements of NCS/NIPAS 2.0. Please be guided accordingly.”