Ayodeji Ayenuwa
Effective March 1, 2024, the Central Bank of Nigeria (CBN) will impose restrictions on accounts lacking a Bank Verification Number (BVN) or National Identification Number (NIN).
A “Post No Debit or Credit” status will be assigned to funded accounts without BVN or NIN, as outlined in a recent circular from the CBN.
In an effort to enhance Know Your Customer (KYC) procedures and ensure financial system stability, the CBN amended the regulatory framework for BVN operations.
The amendment mandates BVN and NIN for all tier-1 bank accounts and individual wallets, with a focus on strengthening KYC protocols in financial institutions.
The CBN emphasized this in a statement, saying, “As part of its effort to promote financial system stability, it becomes necessary to strengthen the Know Your Customer (KYC) procedures in financial institutions under the purview of the Central Bank of Nigeria (CBN).”
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The amendment specifies a process for the electronic retrieval of BVN or NIN-related information from the Nigerian Inter-Bank Settlement System (NIBSS) or National Identity Management Commission (NIMC) databases for customer onboarding.
The CBN detailed this process, stating, “The process for account opening would commence 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.’”
Existing customer accounts without BVN or NIN will face immediate action, being placed on “Post No Debit or Credit” until compliance is achieved. Moreover, as of March 1, 2024, funded accounts or wallets lacking BVN or NIN will be subjected to restrictions, prohibiting any further transactions.
The CBN emphasized this by stating, “Effective March 1, 2024, all funded accounts or wallets shall be placed on ‘Post No Debit or Credit,’ and no further transactions will be permitted.”
To ensure adherence to these new measures, the CBN set a deadline of January 31, 2024, for the electronic revalidation of all BVN or NIN linked to accounts and wallets.
This regulatory move encompasses both new and existing customer accounts across different tiers, reflecting the CBN’s commitment to fortifying KYC procedures in the Nigerian banking industry.
Techrectory with Agency Report.
