Benin: The National Assembly tightens the legal framework against the refusal of CFA franc banknotes and coins.
A significant reform of monetary law was recently adopted by Beninese lawmakers, strengthening penalties against the refusal to accept banknotes and coins issued by the Central Bank of West African States (BCEAO).
This vote comes in a context where the practice of rejecting worn, crumpled, or smooth currency was disrupting daily exchanges and undermining confidence in the official means of payment.
The text now specifies that any refusal of payment in banknotes or coins with legal tender, even if crumpled or worn, constitutes an offense. This obligation to accept covers all currency issued by the BCEAO in the West African Monetary Union (UMOA), of which Benin is a part, emphasizing that the CFA franc has full liberating power in all commercial or service transactions.
Beyond the simple reaffirmation of the principle, the Beninese legislator has provided for harsher sanctions, particularly for economic actors who would systematically refuse valid coins and banknotes.
The law also aims to stop behaviors considered as attacks on monetary signs, covering not only the refusal of acceptance but also the use or retention of counterfeit or altered banknotes and coins.
According to supporters of the text, this legal reform is a strong response to harmful informal practices affecting transactions, which created economic blockages, particularly in rural areas and markets. It fits into a broader logic of securing the national monetary system and facilitating exchanges, while reinforcing citizens’ and economic operators’ confidence in the integrity of the CFA franc.
The government now calls for strict enforcement of these new provisions, while encouraging the normal use of legal tender and reminding that damaged banknotes and coins can be exchanged free of charge at the BCEAO.
Thus, refusing a banknote or coin in CFA francs that is in good condition and with legal tender exposes one to a fine ranging from 100,000 to 500,000 FCFA. The law also targets practices of exchanging money for a fee: anyone demanding a charge to provide small change or exchange banknotes risks a prison sentence of one to three years, along with a fine that can reach 3 million FCFA.
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