CBN cheque printer fines warn banks against using unaccredited firms, with penalties up to N20m and cheque withdrawal from circulation

The Central Bank of Nigeria on February 10, 2026, warned Deposit Money Banks that engaging unaccredited cheque printers or personalisers could attract fines of up to N20m and the withdrawal of affected cheques from circulation under revised sanctions aimed at strengthening the national clearing system.

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The directive was contained in a circular signed by the Director of the Banking Services Department, Hamisu Abdullahi, and addressed to all Deposit Money Banks and accredited cheque printers and personalisers.

The circular, titled “Revised Sanctions on Defaulters of the Nigeria Cheque Standard and Nigeria Cheque Printers’ Accreditation Scheme 2.0,” was published on the apex bank’s website on Thursday.

The Central Bank of Nigeria said the review of the sanction grid was necessary to reflect current realities in the banking industry and to improve the efficiency and safety of the Nigeria Clearing System.

Under the revised framework, any commercial bank found to have engaged an unaccredited cheque printer or personaliser will face withdrawal of the cheques from circulation and a N10m fine.

A repeat offence will attract a N20m fine alongside the withdrawal of the cheques.

The regulator also imposed a N10m penalty per security feature for introducing unapproved security elements into cheque production.

The penalty will be shared equally between the commercial bank and the accredited cheque printer involved.

Accredited personalisers that fail to submit personalised cheque samples for testing and analysis where required will pay a N5m fine based on findings from Central Bank of Nigeria or MTIC audits.

Failure to properly encode cheques or meet mandatory security and quality standards will attract a minimum penalty of N10,000 per instrument.

Accredited cheque printers that do not validate orders before commencing printing jobs will receive a warning, while repeat violations will result in a N1m fine. Failure to submit cheque samples and quality assurance reports will also attract a N5m penalty.

On subcontracting, the Central Bank of Nigeria warned that transferring more than half of a job to another accredited printer or personaliser outside business continuity or disaster recovery arrangements will attract a N20m fine, while a repeat offence could lead to withdrawal of accreditation.

Subcontracting to a non-accredited printer or personaliser will result in a six month suspension of licence and a N10m penalty.

The circular further stated that failure to comply with Nigeria Cheque Standard and NICPAS requirements will require reprinting at the offender’s cost and attract fines rising from N10m to N20m for repeat offences.

Other sanctions include penalties for failing to obtain delivery confirmations of cheque consignments, failure to give mandatory notice before suspending operations, and failure to notify regulators of changes that may affect accreditation status.

Accredited cheque printers and personalisers that ignore regulatory queries may face a N1m daily fine after a seven day grace period, while prolonged default beyond 21 days could lead to suspension of accreditation for at least three months.

Commercial banks that fail to validate MICR data at the point of truncation will face a minimum fine of N10,000 per instrument.

The use of unapproved watermarked paper will attract a N20m fine and withdrawal of cheques from circulation, with possible loss of accreditation for repeat violations.

The Central Bank of Nigeria stated that the revised sanctions would be applied based on complaints or findings from audits, depending on the nature of the infraction.

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The move follows an earlier proposal by the apex bank in November 2025 to impose stricter penalties on individuals who repeatedly issue dud cheques as part of broader efforts to restore confidence and discipline in cheque usage across the financial system.