2010-07-06 | OFISD-01-2010

Illegal Clearing and Conversion/Diversion of Third Party Cheques and Dividend Warrants

The Central Bank of Nigeria has issued a circular addressing illegal activities by some Microfinance Banks (MFBs) and Primary Mortgage Institutions (PMIs). These institutions have been found to be involved in fraudulent practices such as unauthorized clearing, conversion, and diversion of third-party cheques and dividend warrants belonging to various entities. This has led to significant revenue losses and jeopardizes the credibility of the sub-sectors and financial system at large. The Central Bank warns all MFBs to cease these activities or face appropriate legal consequences.

Nigeria

Central Bank of Nigeria

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