Regulatory Alerts2012-11-28 | BPS/DIR/CIR/08/2012Circular to Deposit Money Banks in Respect of the Clearing of Financial Instruments of Liquidated/Legacy Banks
The Central Bank of Nigeria has issued a circular to deposit money banks, instructing them to stop processing and clearing financial instruments of liquidated/legacy banks in the clearing houses. The bank advises that as of January 2nd, 2013, no legacy/liquidated bank financial instruments will be accepted for presentation in Nigerian clearing houses, with severe sanctions for non-compliance.
09-46238445 (Fax) 09-46238445 Central Bank of Nigeria, Central Business District, Private Mail Bag 0187 Garki, Abuja.
BPS/DIR/CIR/08/2012 27th November, 2012.
CIRCULAR TO DEPOSIT MONEY BANKS IN RESPECT OF THE CLEARING OF FINANCIAL INSTRUMENTS OF LIQUIDATED/LEGACY BANKS.
The Central Bank of Nigeria, has noted with concern, the prevalence of legacy/liquidated banks' financial instruments, being processed and cleared for settlement in the various Clearing Houses.
This development is unacceptable and should be discontinued forthwith. The Deposit Money Banks are advised to stop the issuance and circulation of legacy /liquidated banks' financial instruments in our clearing system, particularly as we have migrated to the NUBAN.
Please note that, with effect from January 2nd 2013, no legacy/liquidated banks financial instruments would be allowed for presentation in the Nigerian Clearing Houses. Failure to adhere to this important instruction will attract severe sanctions, in line with extant Guidelines.
'DIPO FATOKUN Director, Banking and Payments System Department, Central Bank of Nigeria, Abuja.