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SECURE YOUR BANK ACCOUNT NOW| SEE THE LATEST METHOD SCAMMERS/FRAUDSTERS ARE USING TO WITHDRAW MONEY FROM ACCOUNT WITHOUT HAVING ACCESS TO YOUR BANK/CARD DETAILS.Deposit Money Banks engaging in illegal sales of mint naira notes to money hawkers for profits may need to desist from this illegal operation or risk a N150 million fine imposed by the Central Bank of Nigeria (CBN). ...READ THE FULL STORY FROM SOURCE ...READ THE FULL STORY FROM SOURCE
Investors King reports a surge in the number of banks hoarding cash and selling it to currency hawkers for high gains.
This illegal operation, while beneficial to a few, has severe effects on bank customers and the general public giving the CBN great concerns.
To tackle this menace, the apex bank announced in a Friday circular signed by its Acting Director of the Currency Operations Department, Mohammed Olayemi, that banks found engaging in the act would face strict sanctions with a N150 million fine.
The circular, an update to an earlier directive dated November 13, 2024, highlghted the CBN’s commitment to eliminating the persistent issue of cash scarcity.
With this new order, directing that any branch of a financial institution found culpable will face a penalty of N150m for the first violation, the CBN is confident of a free flow of cash from banks and an end to cash hoarding.
With warnings of stricter sanctions under the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020, the CBN expressed certainty that illicit cash hawking would be curtailed.
Condemning the illegal act, the apex bank said, “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.SECURE YOUR BANK ACCOUNT NOW| SEE THE LATEST METHOD SCAMMERS/FRAUDSTERS ARE USING TO WITHDRAW MONEY FROM ACCOUNT WITHOUT HAVING ACCESS TO YOUR BANK/CARD DETAILS.
The bank promised that proactive measures would be taken to ensure that commercial banks comply with this directive stressing, “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.
Announcing the sanctions, CBN stated: “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.”
Additionally, the CBN has instructed banks to strengthen internal controls in their cash management operations to prevent further illicit activities.
While banks have acknowledged the directive, some have called for better tools to monitor cash flows effectively.SECURE YOUR BANK ACCOUNT NOW| SEE THE LATEST METHOD SCAMMERS/FRAUDSTERS ARE USING TO WITHDRAW MONEY FROM ACCOUNT WITHOUT HAVING ACCESS TO YOUR BANK/CARD DETAILS.
Through these actions, the CBN reaffirmed its commitment to sanitizing the country’s financial system, safeguarding the Naira, and promoting economic stability.…Read -T.he.Full_Article.Here.
