CBN imposes N150 million fine on banks for illicit mint naira transactions 

This comes as part of measures to curb the commodification of Naira notes, which the CBN says undermines efficient cash distribution to Nigerians.

In a circular issued on December 13, 2024, and signed by the Acting Director of the Currency Operations Department, Mohammed J. Olayemi, the apex bank expressed dismay at the rising trend of mint Naira notes being sold in cash hawking spots across the country.

The circular referred to an earlier directive dated November 13, 2024, underscoring the CBN’s commitment to addressing this illicit activity.

According to the CBN, the fine will be imposed at the first instance of a violation by any bank branch found culpable of facilitating, aiding, or abetting the flow of mint notes to hawkers.

Subsequent violations will attract even stricter penalties under the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.

To ensure compliance, the CBN announced plans to intensify periodic spot checks in banking halls and ATMs, with a focus on reviewing cash disbursement practices.

The apex bank also intends to conduct mystery shopping exercises to identify cash-hawking hotspots and pinpoint banks complicit in the illegal trade.

In addition to the penalties, the CBN has called on banks to tighten their internal controls, processes, and procedures around cash management, particularly at Cash Management Centres, branches, and teller operations.

The circular read: “The CBN has noted with dismay the prevalence of illicit flow of mint banknotes to currency hawkers and other unscrupulous economic agents that commodify Naira banknotes, thus impeding efficient and effective cash distribution to banks’ customers and the general public. 

“CBN will continue to intensify the periodic spot checks to the banking halls/ATMs to review cash payouts to banks’ customers, as well as mystery shopping to all identified cash hawking spots across the country. 

“In this regard, any erring deposit money banks or financial institutions that are culpable of facilitating, aiding, or abetting, by direct actions or inactions, the illicit flow of mint banknotes to currency hawkers and unscrupulous economic agents that commodify Naira banknotes shall be penalised at first instance N150,000,000.00 (One hundred and fifty million Naira) only, per erring branch, and at later instances, apply the full weight of relevant provisions of BOFIA 2020.” 

The apex bank urged financial institutions to take proactive steps to ensure that cash distribution mechanisms are not exploited for illicit purposes.