Cbn lists conditions for banks offering of currency processing services
The Central Bank of Nigeria (CBN) has outlined the following conditions for banks offering currency processing services:
- Licensing: The bank must obtain a license from the CBN to operate as a currency processing bank.
- Minimum Capital Requirement: The bank must have a minimum capital base of N50 billion (approximately $130 million) to ensure its financial stability and ability to meet the demands of currency processing.
- Compliance with Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Regulations: The bank must comply with the CBN's AML/CFT regulations and guidelines to prevent the use of its currency processing services for illegal activities.
- Security Measures: The bank must implement robust security measures to prevent theft, loss, or unauthorized access to currency processing facilities, including the use of secure storage facilities, surveillance cameras, and access controls.
- Currency Sorting and Counting Machines: The bank must use currency sorting and counting machines that are approved by the CBN and meet international standards for accuracy and efficiency.
- Currency Verification: The bank must verify the authenticity of currency notes and coins before processing them, using methods such as watermarks, security threads, and serial number checks.
- Currency Storage: The bank must store currency notes and coins in secure, tamper-evident containers or vaults to prevent theft or loss.
- Auditing and Reporting: The bank must maintain accurate records of currency processing activities and submit regular reports to the CBN, including reports on currency stock, transactions, and any discrepancies or irregularities.
- Staff Training: The bank must provide regular training to its staff on currency processing procedures, AML/CFT regulations, and security protocols to ensure that they are equipped to handle currency processing activities effectively and securely.
- Compliance with CBN's Currency Management Guidelines: The bank must comply with the CBN's guidelines on currency management, including the management of currency stock, the handling of mutilated or damaged currency, and the disposal of unfit currency.
- Currency Processing Fees: The bank must charge reasonable and transparent fees for its currency processing services, and must disclose these fees to its customers.
- Customer Due Diligence: The bank must conduct customer due diligence on its customers, including verifying their identity and the purpose of their currency processing transactions, to prevent money laundering and terrorist financing.
By complying with these conditions, banks offering currency processing services can ensure the integrity and security of their operations, and maintain the trust of their customers and the public.