CBN Announces Heavy Fines for Banks Using Unaccredited Cheque Printers
The Central Bank of Nigeria (CBN) has issued a stern warning to deposit money banks across the country, imposing severe penalties for the use of unaccredited cheque printers. In a circular dated February 10, 2026, the apex bank detailed revised sanctions aimed at fortifying the Nigeria Cheque Standard and the Cheque Printers' Accreditation Scheme 2.0.
Revised Sanctions and Financial Penalties
Under the new regulatory framework, commercial banks found engaging unaccredited cheque printers or personalisers will face a fine of N10 million and the withdrawal of cheques from circulation. For repeat offences, the penalty escalates to N20 million. The circular, signed by Hamisu Abdullahi, Director of the Banking Services Department, emphasizes that these measures are designed to bolster the safety and efficiency of the Nigeria Clearing System.
Key sanctions include:
- Introduction of unapproved security features: A N10 million fine per feature, shared equally between banks and accredited printers.
- Failure by accredited personalisers to submit cheque samples for testing: N5 million fine.
- Non-compliance with mandatory security and quality standards: Minimum fine of N10,000 per instrument.
- Subcontracting over 50% of jobs to non-approved printers: Suspension of license for six months and a N10 million fine.
- Use of unapproved watermarked paper: Withdrawal of cheques from circulation and a N20 million fine, with repeated offences leading to withdrawal of accreditation.
Enhancing Cheque Security and Consumer Confidence
The CBN stated that these sanctions will be enforced based on audits or complaints, complementing earlier proposals to penalize repeat issuers of dud cheques, which include a five-year ban for recurring offences. The central bank highlighted that despite existing legal restrictions, cheques remain vulnerable to abuse, and the revised rules are part of broader efforts to restore public confidence in cheque transactions.
In a related move, the CBN has suspended instant alerts for cheques received from other banks until they are fully processed and cleared. This directive aims to eliminate confusion around pending payments and reduce losses from dishonoured cheques. Previously, customers often received immediate alerts after depositing cheques, creating a false impression of received funds.
Broader Context and Legislative Scrutiny
This announcement comes amid ongoing scrutiny of bank charges by the House of Representatives, which has initiated plans to investigate commercial banks' fees on customer accounts. The House has urged the CBN to publish a simplified list of all approved bank charges to promote transparency and consumer awareness, addressing concerns over excessive deductions such as SMS alert fees and card maintenance charges.
The CBN's proactive measures underscore its commitment to strengthening Nigeria's financial infrastructure, ensuring that cheque transactions are secure, reliable, and aligned with international best practices. Banks are advised to adhere strictly to the accreditation guidelines to avoid hefty fines and operational disruptions.
