...Clamps Down On Issuers Of Dud Cheques
For sanity in the financial sector, Nigeria’s apex bank, Central Bank of Nigeria has ordered commercial banks in the country to publish names of bad debtors just as it has tightened penalties for issuers of dud cheques
The Central Bank of Nigeria (CBN) has issued a directive requesting Banks to periodically publish names of their delinquent/chronic debtors/ customers with non-performing loans in the national dailies. According to the apex bank, delinquent debtors include persons, entities, directors, subsidiaries and other related parties which will consequently be blacklisted and or banned by CBN from participating in the Nigerian Foreign Exchange market as well as the Government Securities market.
To stop the issuance of dishonored (dud) cheques and instill confidence and integrity in the Nigerian negotiable instruments, the CBN has also directed banks and finance houses to implement the following measures against serial issuers of dud cheques: recall/cancel all unused cheque books issued to the account holder; prevent the account holder from using the clearing system for a period of 5 (five) years and send the account holder’s name to the three private credit bureaus and the credit risk management system prescribed by the Central Bank of Nigeria.
The banks and any financial house are also expected to bar the serial issuers of dud cheque from accessing credit facilities from the banking system and send the account holder’s name to the Economic and Financial Crimes Commission for further investigations and prosecution.