CBN Circulars & Publications | |
CBN Circulars & Publications | |
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Tuesday,
October 29, 2019 / 10:11 AM / By CBN / Header Image
Credit: Proshare Ecographics
In order to enhance the efficiency and cost-effectiveness of currency
management, facilitate the generation of fit Naira banknotes for payment,
promote the use of shared facilities to drive down currency management cost,
engender healthy competition among service providers and ensure product
quality, integrity and standardization in Nigeria, the Central Bank of Nigeria
(CBN) hereby mandates all companies, including Deposit Money Banks, who are
desirous of providing currency distribution and/or currency processing services
in Nigeria, either for themselves or for other Deposit Money Bank(s) to
register with the Central Bank of Nigeria.
This update is in furtherance of the circular released by the Central
Bank of Nigeria on the "Notice to Companies Providing Currency Sorting and
Distribution Services and Deposit Money Banks providing these Services for
themselves or other Banks in Nigeria", published on 14th December, 2009.
The requirements for registration are as follows:
1.0 Cash-In-Transit (CIT) Operations
i.
The company
shall be duly incorporated in Nigeria.
ii. The company shall be registered either for
National or Regional Operations. For the purpose of these guidelines, a
National CIT means a company registered to operate in all States of the
federation, while a Regional CIT shall operate within the States of one (1)
geo-political zone.
iii. A company registered to operate as a National
CIT shall:
a. Have a minimum capital of N1 billion or
such other amount as may be prescribed by the CBN from time to time.
b. Be entitled to establish offices in any
State of the federation subject to approval by the CBN, for the purpose of
carrying out its operations.
c. Be authorized to move cash in Naira and
foreign currencies to any part of Nigeria.
iv. A company registered to operate as a
Regional CIT shall:
a. Have a minimum capital of N500 million or
such other amount as may be prescribed by the CBN from time to time.
b. Be entitled to establish offices in States
within one (1) geo-political zone subject to approval by the CBN, for the
purpose of carrying out its operations.
c. Be authorized to move cash in Naira and
foreign currencies within one (1) geo-political zone.
v. Any registered regional CIT shall be
prohibited from establishing offices or carrying out operations in other geo-political
zones.
vi. All approved vehicles of registered service
providers shall be captured in the Cash Activity Reporting Portal (CARP) and
only vehicles captured in the database may be used for CIT services.
vii. Promoters shall be private companies and/or
individuals with proven integrity and experience in financial services
(evidence required).
viii. All promoters/directors shall present
evidence of clearance from the relevant security agencies.
ix. Evidence of insurance with a reputable
Nigerian insurance company to cover the cash-in-transit and personnel.
x. Evidence of transport agreement with cargo
airlines for cash movements between cities serviced by airports.
xi. Armoured vehicles shall have a six-sided
minimum plate standard of not less than B3+ with separate compartments for
currency and personnel; and fitted with run-flat tyres. All the armoured
vehicles shall have vehicle-tracking systems to monitor the location and
security of the movement vehicles.
xii. Evidence of liaison with the appropriate
security agencies such as the NPF, DSS, ONSA, NCS, EFCC, NFIU etc.
xiii. Upon registration, a CIT Company shall have a
working agreement with the Nigerian Police Force to provide security back-up.
xiv. Operational and procedure manuals, detailing
processes from the receipt of orders to execution and full documentation on all
transactions shall be maintained by the CIT Company. This must be in line with
the Central Bank of Nigeria (Anti-Money Laundering & Combating the
Financing of Terrorism in Banks and Other Financial Institutions) Regulations,
2013.
xv. The roles and responsibilities of the
representatives of customers should be clearly stated in the Service Level
Agreements.
xvi. The CIT company shall have in place a Tariff
for both intra- and intercity cash movements and for air, rail and road
movements.
xvii. The CBN shall enforce the implementation of
these guidelines on CIT operations for all players.
xviii. The CIT company shall provide proposals on
how to mitigate risks arising from the following:
a. Operational risks: These
relate to exposure to losses occasioned by diversion of movement to areas not
intended, accident, theft, non-compliance with security requirements, attacks,
fire, information leakage, collusion, unavailability of surveillance systems
and technical workshop etc. All service providers should ensure adequate
security and insurance of their premises, vaults and currency movements.
b. Reputational risks: These
entail integrity and building confidence in the correctness of the currency
being moved, efficiency of operations, obedience to traffic rules and
regulations, respect for other road users and reduction in noise pollution
caused by the blaring of sirens, satisfactory references 4 on employees from
reputable organizations and individuals, backed by adequate guarantees.
c. Technology risks: Ensuring the
deployment of the appropriate armoured vehicles with the appropriate
anti-ballistic properties, reducing the incidence of breakdown during movement
operations, ensuring the safety of cash-in-transit after attack etc.
2.0 Currency Processing Companies (CPC) Operations
i. The company shall be incorporated in Nigeria.
ii. The company shall be registered either for National or Regional
Operations. For the purpose of these guidelines, a National CPC means a company
registered to operate in all States of the federation, while a Regional CPC
shall operate within the States of one (1) geo-political zone.
iii. A company registered to operate as a National CPC shall:
a. Have a minimum capital of N3 billion or such other amount as may be
prescribed by the CBN from time to time.
b. Be entitled to establish offices in any State of the Federation
subject to approval by the CBN, for the purpose of carrying out its operations.
c. Be authorized to process cash in Naira and foreign currencies to any
part of Nigeria.
iv. A company registered to operate as a Regional CPC shall:
a. Have a minimum capital of N2 billion or such other amount as may be
prescribed by the CBN from time to time.
b. Be entitled to establish offices in States within one (1)
geo-political zone subject to approval by the CBN, for the purpose of carrying
out its operations.
c. Be authorized to process cash in Naira and foreign currencies within
one (1) geo-political zone.
v.
Promoters shall
be private companies and/or individuals with proven integrity and experience in
currency sorting operations, financial services, currency processing systems,
sales and maintenance (evidence and proficiency required).
vi. All promoters/directors shall present
evidence of clearance from the relevant security agencies.
vii. The company shall have adequately secured
vaults, either owned or leased. The vaults shall be located in secured areas
with adequate parking space and easy accessibility. The vaults shall meet the
minimum requirements of the CBN in terms of location, area, size, doors
(minimum of 1.97 metres in length and breadth 0.9 metres) and loading bays
(length: 9.144 metres, breadth: 3.458 metres and height: 4.5 metres).
viii. The company shall demonstrate enough
commitment to acquire its own vaults in the future where it operates in leased
vaults.
ix. All vaults used by the service providers,
either leased or owned shall meet CBN minimum requirements for space adequacy,
loading bay specification, accessibility and security (both electronic and
physical) etc.
x. The company can operate from a single
location at the initial stage, but it shall demonstrate ability and commitment
to expand the scope of its operations, upgrade its processing systems,
information and communication technology.
xi. The company shall provide evidence of
technical support from manufacturers of currency processing systems to ensure
continuous and un-interrupted operations.
xii. The company shall provide evidence of
insurance with a reputable Nigerian insurance company to cover cash and
personnel.
xiii. The CBN shall enforce the implementation of
these guidelines on CPC registration and operations for all players.
xiv. The company shall provide proposals/measures
to mitigate risks inherent in currency processing:
a. Operational risks: such as weak internal
control processes/systems to control fraud, theft, deployment of inappropriate
processing systems, security of currency held in the vaults, humidity and dust
in the vaults, fire outbreak etc.
b. Reputational risks: such as shortages,
counterfeit, noncompliance with fitness standards, unsecured bank deposits,
poor service delivery etc.
c. Technological risks: such as system
failure, data theft, deployment of obsolete information and communication
technology, processing systems and unsecured cyber space.
xv. The processing systems deployed by the service providers shall be
programmable and adaptable to conform to the sorting standards as advised by
the CBN from time to time, in line with its Clean Notes Policy.
3.0 Companies Providing Both Cash-In-Transit And Currency
Processing Services In Nigeria (Co-Location)
All companies providing both cash-in-transit and currency processing
services shall meet all the requirements for registration as specified under
Cash-in-Transit and Currency Processing operations. In addition, companies
registered to operate both National CPC and CIT shall have a minimum capital
of ₦4.0 billion or such other amount as may be prescribed by the CBN from
time to time, while companies registered to operate both Regional CPC and CIT shall
have a minimum capital of ₦2.5 billion or such other amount as may be
prescribed by the CBN from time to time.
4.0 Deposit Money Banks Providing Currency Processing And
Distribution Services
Deposit Money Banks desirous of providing currency processing and
distribution services shall jointly (two or more banks) float a subsidiary
company. The subsidiary company(ies) shall meet all these registration
requirements and be subject to the regulatory and supervisory framework of the
CBN.
5.0 Registration Of Prospective Companies
All prospective companies shall meet the registration requirements and 7
be duly registered by the CBN before the commencement of operations in Nigeria.
6.0 Sanctions
Operating Without Registration: Any private company and/or individual(s)
operating without a valid registration issued by the CBN shall have the
facility closed, and in addition the promoters shall be handed over to
appropriate law enforcement agencies for prosecution.
7.0 Method Of Submission Of Application For Registration
Applications for registration shall be submitted to:
The Director,
Currency Operations Department,
Central Bank of Nigeria,
Plot 33, Abubakar Tafawa Balewa Way,
Central Business District, Abuja.
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