Regulatory Alerts2025-11-26 | FPR/DIR/PUB/CIR/001/008Guidelines on the Treatment of Dud Cheques by Banks and Other Financial Institutions in Nigeria - Exposure Draft
The Central Bank of Nigeria has issued new Guidelines on the Treatment of Dud Cheques to curb their issuance and enhance confidence in the banking system, defining a "serial dud cheque issuer" as a customer with three dud cheques. These guidelines establish strict procedures for banks to report dud cheques and bar serial issuers, imposing a five-year restriction on accessing clearing, credit, and opening current accounts for non-compliant customers. Financial institutions are mandated to perform diligent checks, report swiftly to the CBN and credit bureaus, inform customers, and face significant penalties for failures in compliance or due diligence regarding dud cheques.
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