Stricter penalties have been introduced by the Central Bank of Nigeria (CBN) against commercial banks that engage unaccredited cheque printers and personalisers, with sanctions including fines of up to N10 million and the withdrawal of affected cheques from circulation.
The new measures form part of the apex bank’s revised sanctions regime targeting defaulters of the Nigeria Cheque Standard (NCS) and the Nigeria Cheque Printers’ Accreditation Scheme (NICPAS). The review, according to the CBN, is aimed at strengthening compliance, enhancing cheque security features and improving the overall integrity of the Nigeria Clearing System.
Under the updated framework, any bank found to have engaged an unaccredited commercial cheque printer or personaliser—either as reported by accredited printers or detected during CBN or Monetary and Trade Investigation Committee (MTIC) audits—will face an immediate withdrawal of the affected cheques from circulation and a N10 million fine. A repeat violation will attract a stiffer penalty of N20 million, alongside the withdrawal of the cheques.
The CBN further stipulated that failure or refusal to submit personalised cheque samples for mandatory testing and analysis, where applicable, will attract a N5 million fine. In addition, banks that fail to properly encode cheques or meet prescribed security and quality standards will be fined N10,000 per non-compliant instrument.
In a circular announcing the revised sanctions, signed by the Director of the Banking Services Department, Hamisu Abdullahi, the apex bank recalled that it had earlier issued a sanctions grid in 2019 to address infractions under the NCS and NICPAS framework.
The regulator stated that the review became necessary in light of evolving realities within the banking sector and its ongoing commitment to promoting efficiency, transparency and safety in cheque clearing operations nationwide.
The CBN directed all banks and accredited cheque printers and personalisers to comply strictly with the revised provisions, warning that any breaches under NCS/NICPAS 2.0 will be met with the stipulated penalties.