CEM REPORT, FINANCE | The Central Bank of Nigeria (CBN) has issued a “Post no Debit” order on all bank accounts without Bank Verification Number (BVN) and the National Identity Number (NIN).
There order which takes effect from March 1, 2024, also mandates BVN and NIN as the primary information for onboarding of new customers.
This was contained in a circular jointly signed by Chibuzo Efobi, director, payment system management department, and Haruna Mustafa, financial policy and regulation department, issued on Friday, 1st of December 2023, and sent to all deposit money banks in the country.
According to the circular, no new Tier 1 accounts and wallets should be opened without BVN or NIN, stressing that the process for account opening shall commence by electronically retrieving BVN and NIN related information from the NIBSS BVN or NIMC’s NIN databases.
Furthermore, the CBN noted that “All existing customer accounts/wallets for individuals with validated BVN shall be profiled by the NIBSS ICAD immediately and within 24 hours of opening accounts/wallets.”
Also, The BVN or NIN attached to and/or associated with all accounts/wallets must be electronically revalidated by January 31, 2024.
The CBN further directed that all unfunded accounts/wallet existing Tier1 accounts/wallets without BVN or NIN, shall effective immediately be placed on “Post No Debit or Credit” until the new process is satisfied.
While all funded accounts or wallets shall be placed on “Post No Debit or Credit ” and no further transactions permitted from March 1, 2024,
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“All existing customer accounts/wallets for individuals with validated BVN shall be profiled by the NIBSS ICAD mediately and within 24hrs of opening accounts/wallets,” the circular added.
Accordingly, the financial institution therefore stated that it will enforce section 1.5.3. of the Regulatory Framework of Bank Verification Number (BVN) and Watch-List for the Nigeria Banking Industry to implement the new policies.
To ensure uniform and full compliance, the Executive Compliance Officers, Chief Compliance Officers or Heads of the Compliance Functions are advised to acquaint themselves with the attached Guidance Notes which become applicable to all institutions regulated by the CBN.
Also, the CBN noted that a comprehensive BVN and NIN audit shall be conducted shortly and where breaches are identified, appropriate sanctions shall be applied.