The Central Bank of Nigeria (CBN) states it will lock accounts lacking a Bank Verification Number (BVN) or National Identification Number (NIN) starting April 2024.
This information as reported by Freshreporters News is a Friday circular by the apex bank, instructing banks to impose a “Post no Debit” restriction – preventing customers from executing withdrawals, transfers, or any other debits “for all existing Tier-1 accounts/wallets without BVN or NIN”.
“Immediately, any unfunded account/wallet shall be put on ‘Post No Debit or Credit’ until the new process is satisfied. From March 1, 2024, all funded accounts or wallets shall be placed on ‘Post No Debit or Credit’ with no further transactions allowed,” the circular by the CBN Director of Payments System Management Department Chibuzo Efobi, and the Director of Financial Policy and Regulation Department Haruna Mustapha read in part.
It also mentioned all BVN or NIN linked to accounts/wallets must be electronically revalidated by January 31, 2024.
As per the bank, a BVN or NIN verification will occur “shortly”, noting that this move is part of its endeavors to boost financial system stability and enhance Know Your Customer (KYC) procedures in financial institutions.
The bank will also conduct a “thorough BVN and NIN audit shortly” and where breaches are detected, appropriate sanctions shall be implemented.
“The procedure for account opening shall begin by electronically retrieving BVN or NIN-related information from the NIBSS’ BVN or NIMC’s NIN databases and for the same to become the primary information for onboarding new customers. All existing customer accounts/wallets for individuals with validated BVN shall be profiled in the NIBSS’ ICAD immediately and within 24hrs of opening accounts/wallets,” the CBN added.
In cases where a potential customer lacks a BVN or NIN, the CBN recommended the regulated financial institution to “initiate the process of enrolling the individual onto the BVN database and follow the existing protocols issued by NIBSS”….[CONTINUE READING HERE]>>
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