The Central Bank of Nigeria (CBN) has given banks and other financial institutions a 30-day timeline to close accounts without Bank Verification (BVN).
Data from the Nigeria Inter-Bank Settlement System (NIBSS) showed that 57.39 million customers’ accounts have been linked to their BVNs as at April 8.
A review of the ‘Regulatory Framework for Bank Verification Number (BVN) Operations and Watch-list for the Nigerian Banking Industry’said the move was driven by the demand for effectiveness of Know- Your-Customer (KYC) and Customer’s-Due-Diligence principles, and promotion of more safe, reliable and efficient banking and payment systems.
The policy was also meant to address increasing incidence of frauds and to enhance public confidence in the banking industry and provide a guide for BVN operations and watch-list activities carried out by financial institutions in Nigeria.
As part of the policy implementation plan, the CBN directed banks to link customer’s BVN to related accounts/wallets (except Tier 1).