Why CBN seek to bar BVN violators from banking services

The Central Bank of Nigeria has said that, the move for revised regulatory framework for bank verification number operations and watchlist for the Nigerian banking industry was to promote financial system stability.

The apex bank in a circular on Wednesday, said this framework defines the operations of BVN as well as the establishment and operations of a watch-list for the Nigerian banking industry, to address the increasing incidence of frauds and to enhance public confidence in the banking industry.

According to the circular signed by Musa Jimoh, CBN’s director, payments system department, “This framework, without prejudice to existing laws, is a guide for the operations of the watch-list in the financial system.

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The watch-list is a database of customers identified by their BVNs, who have been involved in confirmed cases of breaches, as defined within the framework.”

He said, under the new framework, no new account/wallet (except Tier 1) shall be allowed to operate without BVN (except inflows) while any account/wallet (except Tier 1) without BVN shall be closed within 30 days.

The circular listed watch-list stakeholders to include the CBN, Nigeria Inter-Bank Settlement System (NIBSS), banks, other financial institutions and bank customers.

For customers who breach the BVN regulations and subsequently placed on the watchlist, such persons or organisations shall not be allowed to enter a new relationship with any participant including banks and other financial services providers.

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