Nigeria's central bank blacklists issuers of fraudulent cheques

Nov 25, 2013

Any individual or organisation that issues bounced or dishonoured cheques on three occasions will be blacklisted and barred from the banking system, the deputy governor of the Central Bank of Nigeria (CBN) warned on Wednesday (November 20th).

Any individual or organisation that issues bounced or dishonoured cheques on three occasions will be blacklisted and barred
from
the banking system, the deputy governor
of the Central Bank of Nigeria (CBN) warned on Wednesday (November 20th).

Alhaji Suleiman Barau said the CBN intends to create an environment where such incidence would be formally reported to law enforcement agencies for prosecution, This Day reports.

He said - during the opening of a national stakeholders' workshop on dishonoured cheques in Nigeria - that this move is expected to have a dissuasive effect.

The participants agreed that the Dishonoured/Dud Cheques Act of 1977 was no longer adequate and called for an outright review.

A commissioner
with the Law Reform Commission, Osaremen Osunbor, argued the current definition of dud cheques needed to be clarified and expanded to go beyond the notion of having insufficient funds in the issuer's bank account. He also said that the current fines for issuers of dud cheques were not dissuasive enough.ADNFCR-2976-ID-801664316-ADNFCR