From Uche Usim, Abuja
Henceforth, customers of Deposit Money Banks, microfinance banks (MFBs), payment service banks, mobile money operators and other financial institutions are to provide their Biometric Verification Numbers (BVN) and National Identity Card Numbers (NIN) as part of the upgraded Know-Your-Customer (KYC) requirements rolled out by the Central Bank of Nigeria (CBN). Failure to do this means the account shall be blocked automatically till necessary rectifications are done.
For new customers, their BVN and NIN must be validated before the accounts are opened and made operational. These were contained in a circular signed by Chibuzo Efobi, Director, Payment Systems Management Department of the CBN and Haruna Mustapha, Director Financial Policy and Regulation Department.
The apex bank said the move was part of its effort in promoting financial system stability by strengthening the Know Your Customer (KYC) procedures in financial institutions under its purview.
“Accordingly, the CBN hereby issues an amendment to Section 1.5.3 of the Regulatory Framework for BVN operations and watch-list for the Nigerian banking industry.
“It is mandatory for all Tier-1 bank accounts and wallets for individuals to have BVN and/or NIN. It remains mandatory for Tiers 2 & 3 accounts and wallets for Individual accounts to have BVN and NIN;
“The process for account opening shall commence by electronically retrieving BVN or NIN related information from the NIBSS’ BVN or NIMC’s NIN databases and for same to become the primary information for onboarding of new customers, and all existing customer accounts/wallets for individuals with validated BVN shall be profiled in the NIBSS’ ICAD immediately and within 24-hour of opening accounts/wallets” the circular stated.
The CBN warned that no new Tier1 accounts and wallets should be opened without BVN or NIN, “For ALL existing Tier1 accounts/wallets without BVN or NIN, effective immediately, any unfunded account/wallet shall be placed on “Post No Debit or Credit” until the new process is satisfied
“Effective March 1, 2024, all funded accounts or wallets shall be placed on ‘Post No Debit or Credit’ and no further transactions permitted”, it added.