Regulatory Alerts2022-04-01 | COD/DIR/INT/CIR/001/006Re-Treatment of Composed Banknotes
The Central Bank of Nigeria is addressing the issue of Composed Banknotes, which are counterfeit banknotes made from parts of different genuine banknotes of the same denomination. The Bank has noticed an increase in Composed Banknotes deposited by Deposit Money Banks and requested by the public. To deter this practice, the Bank will impose a penalty of 400% of the value of any Composed Banknote discovered in deposits from April 1, 2022.
CENTRAL BANK OF NIGERIA Corporate Head Office: Plot 33, Abubakar Tafawa Balewa Way, Central Business District, Cadastral Zone, P.M.B. 0187.
Garki - Abuja.
Tel: +234 9 462 38544, Fax: +234 9 462 38545 Website: www.cbn.gov.
CIRCULAR COD/DIR/INT/CIR/001/006 March 31, 2022 All Deposit Money Banks TREATMENT OF COMPOSED BANKNOTES The Management of the Central Bank of Nigeria (CBN) observed with concern the increase number of Composed Banknotes deposited by Deposit Money Banks (DMBs) and request for replacement of such banknotes by members of the public. The existence of Composed Banknotes in the economy falsifies the true value of Currency in Circulation and can also be avenue for fraudulent activities.
A Composed Banknote is a banknote that comprises of several parts of different banknotes of the same denomination put together with the intention of receiving value.
Consequently, any Composed Banknote discovered in the deposit of DMBs shall attract penalty of 400% of the value.
This circular takes effect from 1st April, 2022.
Thank you. Yours faithfully, Ahmed Bl. Umar Director, Currency Operations Department.