The Central Bank of Nigeria (CBN) has raised cheque violations penalties to as much as N10 million per infraction, tightening compliance rules for banks and accredited cheque printers.
In a circular dated February 10 and signed by Hamisu Abdullahi, director of the Banking Services Department, the regulator said the tougher sanctions are aimed at strengthening the Nigerian clearing system and aligning operations with current industry realities.
The revised framework replaces the 2019 regime and introduces a tiered penalty structure based on the severity and frequency of offences.
Banks that fail to submit personalised cheques for mandatory testing face an initial fine of N5 million.
Operators engaging in unaccredited practices or using unapproved seals risk fines starting from N1 million per infraction and rising to N20 million for repeated breaches.
A minimum fine of N10,000 per instrument now applies to certain cheque-related violations.
The new cheque violations penalties also target accredited cheque printers and personalisers.
Printers that fail to meet mandatory security standards will receive a warning and a N1 million fine for repeat violations.
More severe breaches attract heavier sanctions. Producing cheques with unapproved security features now carries a N10 million fine per security feature.
Banks subcontracting cheque production to non-accredited printers face a N2 million penalty. The same fine applies where banks fail to seek proper accreditation for cheque suppliers.
Additional sanctions apply to banks that neglect to notify the regulator of suspension or cessation of operations, with fines reaching N2 million per infraction.
Introducing unapproved watermarked paper or engaging in unauthorised activities attracts a N2 million fine, which doubles for repeat offences.
Persistent violations could trigger suspension or licence revocation for between six months and three years. The CBN warned that criminal prosecution under existing banking regulations may also apply.
The apex bank directed all deposit money banks and accredited cheque printers to comply immediately, stressing that the new cheque violations penalties are designed to protect the integrity of Nigeria’s payment system and ensure cheque transactions meet international standards.
