Banks to pay N10m fine for using unaccredited cheque printer

By Elizabeth Adegbesan

The Central Bank of Nigeria, CBN, has slammed a N10 million fine and withdrawal of cheques on commercial banks using unaccredited cheque printers/personaliser.

The apex bank disclosed this in its revised sanctions regime on defaulters of the Nigeria Cheque Standard and Nigeria Cheque Printers’ Accreditation Scheme (NICPAS).

Among other things, CBN said: “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.”

In a circular announcing the sanction, which was signed by Director, Banking Services Department, Mr.   Hamisu Abdullahi, CBN recalled  that it issued a circular on sanctions on defaulters of the Nigerian Cheque Standards (NCS) and Nigeria Cheque Printers Accreditation Scheme (NICPAS) in 2019.

“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,” CBN added.

The post Banks to pay N10m fine for using unaccredited cheque printer appeared first on Vanguard News.