Rule · CBN · 23 May 2004 · TED-AD-53-2004
The Central Bank of Nigeria has issued a circular warning all community banks and primary mortgage institutions against illegally clearing, converting or diverting third-party cheques. This practice not only leads to significant losses for affected institutions and individuals but also jeopardizes the credibility of the financial sector and system. Institutions found guilty will face appropriate legal action.
OUR REF: OFID/DO/CIRC/VO.387 April 29, 2004 CIRCULAR TO ALL COMMUNITY BANKS AND PRIMARY MORTGAGE INSTITUTIONS The attention of the Central Bank of Nigeria has been drawn to a series of illegal clearing and conversion/ diversion of third party cheques belonging to parastatals, agencies, corporate bodies and individuals by some community banks. This fraudulent practice which has resulted in the loss of huge revenues to the affected institutions and individuals is also capable of destroying the credibility of the financial sector and the financial system in general. In view of the foregoing, it has become very imperative to warn all Non-Bank Financial Institutions, particularly, the community banks to desist from this unwholesome practice as any institution or individual found to be involved would be appropriately and decisively dealt with in accordance with the law. A. Sesan Bamisile Director, Other Financial Institutions Department
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“further to our earlier circular NO: OFID/DO/GRC/VOL.387 of 29th April, 2004”
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Source: Central Bank of Nigeria — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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