The Central Bank of Nigeria (CBN) has announced that it will freeze accounts that do not have a Bank Verification Number (BVN) or National Identification Number (NIN) starting from April 2024.
In a circular issued on Friday, the apex bank instructed banks to place a “Post no Debit” restriction on all existing Tier-1 accounts and wallets without BVN or NIN, preventing customers from making withdrawals, transfers, or any other debits.
The CBN has called for the electronic revalidation of all BVN or NIN attached to accounts and wallets by January 31, 2024. It stated that BVN or NIN verification will be conducted shortly as part of efforts to promote financial system stability and strengthen “Know Your Customer” (KYC) procedures in financial institutions.
To streamline the account opening process, the CBN plans to electronically retrieve BVN or NIN-related information from the Nigerian Inter-Bank Settlement System (NIBSS) BVN or National Identity Management Commission (NIMC) NIN databases. The information will become the primary basis for on-boarding new customers, and existing customer accounts with validated BVN will be profiled in the NIBSS’ ICAD within 24 hours of opening accounts or wallets.
The CBN will also conduct a comprehensive BVN and NIN audit to identify any breaches, and appropriate sanctions will be applied. In cases where potential customers do not have a BVN or NIN, the CBN advised regulated financial institutions to enrol these individuals onto the BVN database according to protocols issued by the NIBSS.
This step by the CBN aims to enhance the security and efficiency of the financial system and ensure compliance with KYC regulations. It emphasizes the importance of proper identification and verification of individuals to combat fraud, enhance customer protection, and strengthen the integrity of Nigeria’s banking sector.
