Dud cheque issuance is a serious offense in law. issuing dud cheques not only causes great damage to the issuer’s integrity but the business. In very serious cases, the issuer can be charged with criminal breach of trust that could even land the issuer in jail.
That explains why the Central Bank of Nigeria (CBN) policy on dud cheques mandates all banks to advise their Individual and Corporate account holders to refrain from issuing Dishonoured (Dud) cheques, that is issuing a cheque against an unfunded account.
Hence, before issuing a cheque, Individual and Corporate account holders are adviced to ensure the account is funded by confirming details through any of our e-channels (Internet Banking, Sterling Mobile Money, ATM services) or dial *822*6*NUBAN#. They are to confirm their cheques through Relationship Manager to guarantee the instruments are duly processed.
The CBN has imposed additional regulatory measures/sanctions against Dud cheque issuers, therefore all Banks are required to:
1.      Recall/cancel all unused cheque books issued to serial issuers of Dud cheques.
2.     Bar affected customers from using the clearing system for a period of (5) years.
3.   Forward the names of Dud Cheque Offenders to the three private Credit Bureaux and the Credit Risk Management System (CRMS). Details of such clients will be listed on the Private Credit Bureaux and the Credit Risk Management System (CRMS) database for a five year period.
4.  If the offender is found wanting after the five- year period, they shall be reinstated permanently in the Private Credit Bureaux and the Credit Risk Management System (CRMS) database.
5.  Bar the serial issuers of Dud cheques from accessing credit facilities from the Banking system for a period of 5 years.
6. Perform status check on all potential customers from CRMS and at least two (2) Credit Bureaux before on-boarding them.
