Sanctions on Erring Banks and Cheque Printers / Personalizers for Infractions of the Revised Nigerian Cheque Standard (NCS) and Nigerian Cheque Printers Accreditation Scheme (NICPAS)

BANKING SERVICES DEPARTMENT CENTRAL BANK OF NIGERIA Central Business District P.M.B. 0187, Garki, Abuja.

+234 - 0946238445 REF: BKS/DIR/CIR/GEN/02/044 November 5, 2019 To: All Deposit Money Banks (DMBs), Accredited Cheque Printers / Personalizers and Nigeria Inter-Bank Settlement System (NIBSS) SANCTIONS ON ERRING BANKS AND CHEQUE PRINTERS / PERSONALIZERS FOR INFRACTIONS OF THE REVISED NIGERIAN CHEQUE STANDARD (NCS) AND NIGERIAN CHEQUE PRINTERS ACCREDITATION SCHEME (NICPAS) Please recall that the Central Bank of Nigeria reviewed the Nigerian Cheque Standards (NCS) and Nigeria Cheque Printers Accreditation Scheme (NICPAS), to increase the efficiency and safety of the Nigerian Clearing System.

Section 1.5.2 of the revised NCS/NICPAS documents specified some acts by banks, cheque printers and cheque personalizers that are classified as infractions.

The Bank observed the need to specify appropriate sanctions on any erring institution which fails to comply with the provisions of the revised NCS/NICPAS documents, to instill discipline in the cheque clearing system.

In view of this, the Bank hereby stipulates the following as applicable sanctions for such infringements:

S/N	OFFENSE	RESPONSIBILITY	SANCTION/REMARK
1.	Failure/refusal to submit	Accredited	N1,000,000.00 fine
personalised cheque	Personalizer
samples for testing and
analysis (when
applicable).
2.	Engagement of	Deposit Money Banks	1.	Withdrawal of
unaccredited Cheque	cheques from
Printer/Personaliser by	circulation
DMBs

	2.	N1,000,000.00
	fine for a repeat
	offence
3.	Failure to encode	Accredited	N2,000 per instrument
cheques properly or	Personaliser
meet the mandatory
security and quality
standards.
4.	Non-validation of order	Accredited Cheque	1. Warning.
before commencement	Printer	2. Penalty of N200,000
of cheque printing job.	in case of a repeat
	offence
5.	Introduction of	DMB & Accredited	N1,000,000 per security
unapproved security	Cheque Printer	feature. Penalty will be
feature(s).	shared equally by the DMB
	and accredited cheque
	printer.
	N1,000,000.00 fine.
6.	Failure to submit	Accredited Cheque
cheque samples and	Printer
quality assurance report
by accredited printer	Accredited Cheque	1. N1,000,000 fine
7.	Subcontracting	Printer	2. Termination of
significant portion of job
(above 50%) to another	accreditation for a
	repeat offence.
Accredited Printer /
Personaliser other than
in BCM / DRP situation.

8.	Failure to	Accredited Cheque	Reprint/personalise at
produce/personalise	Printer & Personaliser	own cost.
cheques that conform to
NCS/NICPAS standard.	1.	Waming will be
9.	Failure to set up or	Accredited Cheque	served, after which
execute a BCM/DRP	Printer & Personaliser	a period (to be
with another Accredited
Printer/Personaliser.	determined by
	CBN/MTIC) will be
	given to set
	up/execute
	BCM/DRP.
	2. Failure to execute
	within advised
	timeline will result
	in suspension of
	licence.
10.	Subcontracting to a	Accredited Cheque	Termination of
Non-accredited	Printer & Personaliser	accreditation.
Printer/Personaliser.
11.	Failure to request for	DMB, Accredited	1.	Warning.
/obtain delivery	Cheque Printer &	2. Penalty of
confirmation of shipped	Personaliser	N500,000 in case
consignments	of a repeat offence
12.	Failure to give the	Accredited	Cheque	1. Warning.
mandatory 6 months'	Printer & Personaliser	2. Penalty of
notice of planned	N500,000 in case
temporary suspension	of a repeat offence
or cessation of
operations to
CBN/MTIC.

13.	Failure to give the	Accredited	Cheque	1. Warning.
	Printer & Personaliser	2. Penalty of
mandatory 4 weeks'	N500,000 in case
notice of changes in
current arrangement	of a repeat offence
which may affect
accreditation status to
CBN/MTIC. See section
1.2.5 of NICPAS/NCS
(version 2.0)
14.	Failure of Cheque	Accredited	Cheque	1.	Warning
Printer/Personaliser to	Printer & Personaliser	2.	Penalty to be
respond to queries	determined by
arising from infractions,	CBN/MTIC if response
from CBN/MTIC.	is not obtained within
	a specified period
	after the initial
	warning.

Please be guided accordingly.

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