Regulatory Alerts2016-09-15
Added · Updated
Cheque Account Operation Directives No. SBB/64/2016
The National Bank of Ethiopia mandates that banks verify customers are not on the delinquent list and require a Tax Identification Number (TIN) for cheque accounts, with existing customers needing to provide one within six months. Banks must block outgoing transactions and levy fines of 3% (capped at 25,000 Birr) or 5% (capped at 50,000 Birr) for second and third dishonored cheques respectively, with third offenses resulting in account closure. The directives establish a Dishonored Cheque Register and a delinquent list circulated by the National Bank, requiring banks to report closures within five working days and allowing reinstatement only after specific suspension periods and settlement of penalties.