DISHONOURED CHEQUES (OFFENCES) ACT (AMENDMENT) BILL, 2017

A Bill amends the law on dishonoured cheques by increasing penalties for issuing them fraudulently. It targets individuals who knowingly write cheques that will bounce. This aims to deter cheque fraud in everyday transactions.

What Is This Policy?

A proposed amendment Bill seeking to update and strengthen the penalties for issuing dishonoured cheques in Nigeria, reflecting the increased use of cheques in commercial transactions and the harm caused by cheque fraud.

Who Does It Target?

Persons who issue cheques knowing they will be dishonoured Payees and victims of dud cheques Banks reporting dishonoured cheques Prosecutors handling cheque fraud cases

What Does It Aim to Achieve?

Deter cheque fraud by updating penalties to reflect current economic conditions, and align the dishonoured cheque regime with modern payment system realities.

Key Features

Enhanced Penalties: Proposes increased fines and imprisonment terms for the offence of issuing a dud cheque. Scope Expansion: Seeks to extend the offence to electronic and digital cheque equivalents. Banking System: Strengthens reporting obligations on banks when cheques are dishonoured. Victim Remedies: Improves access to compensation for victims of dishonoured cheques.

Current Status

Rollout Stage: Bill stage — awaiting enactment by National Assembly Coverage: Nationwide cheque transactions Beneficiaries: Payees; payment system integrity Funding: Not applicable

How to Access

Bill not yet enacted — current law under the Dishonoured Cheques (Offences) Act Cap D13 applies Current offence: 2 years imprisonment or N10,000 fine for issuing a dud cheque Application method: Report dishonoured cheques to the Police under current law.

Important Terms

The Bill has not been enacted; provisions may change before final passage Current Dishonoured Cheques Act remains the operative law Issuing a cheque knowing there are insufficient funds is currently a criminal offence

Official Resources

Website: https://www.nass.gov.ng Contact: National Assembly

Legal Framework

The Dishonoured Cheques (Offences) Act (Amendment) Bill 2017 operates under the Dishonoured Cheques (Offences) Act 1977, the Bills of Exchange Act, and the Banks and Other Financial Institutions Act 2020. It aligns with the CBN Cheque Standards and Specifications Regulations, the Uniform Rules for Collections (URC 522) of the International Chamber of Commerce (ICC), and the Nigeria Inter-Bank Settlement System (NIBSS) electronic payments framework.