in ,

Nigerian banks gets deadline to review “dead customers” BVN

The Central Bank of Nigeria (CBN) has urged banks and other financial institutions to report a dead customer’s Bank Verification Number (BVN) to the Nigeria Interbank Settlement System (NIBSS) within 24 hours of confirmation.

The mandate is contained in the apex bank’s amended BVN guideline, which was signed by Musa Jimoh, its Director of Payment System Management.

“Within 24 hours of confirmation, report the BVNs of confirmed deceased clients to NIBSS for designation as “Deceased” on the BVN database,” the circular stated.

The banks are also expected to use the watch-list report submitted by participants and duly certified by the institution’s Managing Director/CEO, along with clearance from the CBN’s Director, Risk Management Department, to delist the BVN from the watch-list.

READ ALSO: Dangote refinery will save Nigeria up to 30% of FX spent on imports – CBN

Jimoh stated that the CBN’s action was in accordance with the authorities granted to the regulator by the Central Bank of Nigeria Act, 2007 (CBN Act) and the Banks and Other Financial Institutions Act (BOFIA) 2020.

Violators would be sanctioned, according to the updated regulatory framework for BVN operations.

As part of the goal for promoting a safe and efficient banking and payment system, the framework improves the effectiveness of client due diligence and Know Your Customer processes.

In a circular issued to deposit money banks, mobile money operators, super agents, and payment service providers and headlined “Issuance of new regulatory framework for Bank Verification Number operations and watch-list for the Nigerian banking industry,”

The CBN, the Nigeria Inter-Bank Settlement System (NIBSS), banks, other financial institutions, and bank clients were all named as watch-list parties in the circular.

Misuse of the BVN watch-listing process for victimization; incorrect linkage of accounts/wallets (excluding Tier 1); and any infraction(s) as decided by the CBN will result in sanctions, according to the circular.

What do you think?

Leave a Reply

Your email address will not be published.

GIPHY App Key not set. Please check settings

“I must feature in every game except I’m not fit enough” – Ronaldo

Nigeria’s inflation rate slows down to 16.63%