Benin’s parliament has unanimously passed a sweeping financial reform aimed at significantly strengthening the country’s fight against the production and circulation of counterfeit banknotes.
The reform also significantly increases penalties targeting traders and individuals who refuse to accept notes and coins issued by the Central Bank of West African States (BCEAO).
Crucially, this mandate specifically covers currency that is slightly damaged but still considered valid legal tender.
To enforce acceptance of the CFA franc, the law introduces fines and potential prison sentences for those who refuse the currency or charge excessive fees to exchange it.
The updated law reserves its most severe punishments for those involved in the actual counterfeiting or falsification of banknotes and coins, mandating prison sentences of 10 to 20 years.
Offenders in these cases face substantial financial penalties, which can include fines up to ten times the value of the seized currency, with a minimum financial penalty set at 20 million CFA francs ($35,550).
Beyond production, the new legislation places a renewed focus on halting the circulation of fake banknotes through strengthened enforcement.
Individuals who knowingly transport, possess, import, or introduce counterfeit currency into circulation will now be subject to prison terms ranging from five to seven years.
The President of the Finance Committee addressed parliament, stating that the bill’s intent is to modernize the existing sanctions framework and address contemporary forms of financial crime.
He further explained that the new provisions align Benin’s regulatory commitments with the standards established by the West African Monetary Union and its central bank.
Ultimately, officials project that these legal changes will eliminate delays in daily transactions and foster greater confidence and fluidity of payment for the CFA franc throughout the monetary union.
