Following the rise in the volume of dishonoured cheques in the banking system and the threat of the Central Bank of Nigeria (CBN) to drag issuers of dud cheques to the Economic and Financial Crimes Commission (EFCC), money deposit banks have commenced a vigorous sensitisation campaign to discourage their customers from running foul of the law.
The CBN, had in a circular to the banks earlier in the month, threatened to prosecute issuers of dud cheques who the financial regulators said would be handed over to the Economic and Financial Crimes Commission (EFCC).
The apex bank, while putting financial institutions on the alert also directed banks to interface with their customers and warned them of serious consequences should they contravene the law on the issuance of dishonoured cheques.
The apex bank had warned that the trend could severely erode confidence in the acceptance of cheques to third parties.
Consequently banks have commenced a CBN-ordered campaign to educate bank customers of the consequences of going against the policy through email messages to their various account holders.
According to one of such messages forwarded by Guaranty Trust Bank Plc to its customers, “the rising volume of dud cheques, which the apex bank described as alarming is also said to be threatening the Cash-lite policy which seeks to discourage the use of cash for financial transactions.
“As part of efforts to address the issuance of dud cheques, CBN has directed all banks to identify customers who have issued dud cheques on three instances with effect from July 5.
“Banks have been directed to send details of customers together with copies of dud cheques to CBN. The Central Bank will in turn forward such details to the Economic and Financial Crimes Commission (EFCC) for further investigation.
“Our esteemed customers are therefore advised to make sure that their accounts are funded before issuing a cheque to a third party and to also confirm all cheques via our internet banking platform or relationship managers, as this will ensure the cheque is honoured,” the statement said.
The CBN in a circular with reference number FPR/DIR/CIR/GEN/03/005 and dated July 5, 2013 directed all banks to advise all customers against issuing dud cheques to third parties i.e. issuing a cheque against an unfunded account.
According to the central bank, the volume of dishonored cheques in the financial system is on the increase and has shown no signs of declining. This, it said, results in low confidence in the acceptance of cheques and adversely affects the “cash-lite” policy aimed at reducing the volume of cash based transactions in Nigeria.
According to reports, the CBN opted for the prosecution of the offenders under the Dishonoured/Dud Cheques Act of 1977. The law, which stipulates a two-year jail term upon conviction for dud cheque issuers, has rarely been enforced in the country. All such suspects are henceforth to be handed over to the Economic and Financial Crimes Commission (EFCC) for prosecution.
It was gathered that a special website in which offenders\’ names are sent to would be made available to the EFCC for necessary action.
Dishonoured/Dud Cheques Act is an to make it an offence for any person anywhere in Nigeria to induce the delivery of any property or to purport to settle a lawful obligation by means of a cheque which when presented within a reasonable time is dishonoured on the grounds that no funds or insufficient funds were standing to the credit of the drawer of the cheque, and for matters connected therewith.
© dARA for Royal Times of Nigeria Newspaper, 2013. |
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posted in Business by Tunde LEMUEL