The Central Bank of Nigeria has issued a warning to Deposit Money Banks not to deposit “composed banknotes” with the apex bank.
The warning was contained in a circular published in Abuja by Ahmed Umar, the Director of the Central Bank of Nigeria’s Currency Operations Department, which he stated went into force on April 1.
Composed banknotes are mangled currency notes made made up of many sections from different banknotes of the same denomination.
The components of such currency notes are typically assembled with the goal of receiving value.
According to Mr. Umar, the presence of counterfeit banknotes in the economy distorts the genuine value of currency in circulation and may even serve as a conduit for fraudulent activity.
He stated that from now on, any constructed banknotes identified in the deposit of DMBs will be subject to a penalty of 400% of the value.
“The management of the CBN observed with concern the increase number of composed banknotes deposited by DMBs and request for replacement of such banknotes by members of the public.
“The existence of composed banknotes in the economy falsify the true value of currency in circulation, and can also be avenue for fraudulent activities.
“Consequently, any composed banknote discovered in the deposit of DMBs shall attract penalty of 400 per cent of the value,” he said.
