CBN Rule Stops Bank Verification Number Violators from Opening Bank Accounts, Using Banking Services

CBN Rule Stops Bank Verification Number Violators from Opening Bank Accounts, Using Banking Services

  • The Central Bank of Nigeria (CBN) has issued an order prohibiting BVN offenders from opening new bank accounts
  • This is contained in a published Revised Regulatory Framework for BVN operations and Watch-List for the banking industry
  • NIBSS data shows as at Sunday, November 21, 2021, there are 51.1 million Bank Verification Numbers and 120m active bank accounts

The Central Bank of Nigeria (CBN) has disclosed measures to restrict bank accounts on its watchlist from getting loans and other banking services.

The CBN revealed this in its Revised Regulatory Framework for Bank Verification Number (BVN) operations and Watch-List for the Nigerian Banking Industry and signed by Mr. Musa Jimoh, Director, Payments System Management Department.

According to Jimoh CBN has created a watchlist database of customers identified by their BVNs, who have been involved in confirmed cases of breaches.

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CBN to sanction violators which Includes Loans, Access to Banking Services
Customers withdraw money from an automated teller machine (ATM) at a bank Credit: Pius Utomi Ekpei/AFP
Source: Getty Images

He also stated that the framework will improve and promote a secure and efficient banking and payment system.

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Jimoh said:

"All electronic channels should be restricted to holders of an account/wallet on the watch-list, including but not limited to Automated Teller Machines, Point of Sale, Internet Banking, Mobile Banking, USSD, and the issuing of third-party cheques."
"The new framework also states that a customer with a watch-listed BVN may not reference accounts, have access to credit facilities, or guarantee credit facilities; hence, customer breaches include the use of false papers, forgery, compromise, complicity, and connivance."

Other violations that could result in sanctions, according to Jimoh, include duplicate enrolment, the use of fictitious information, receipts of deception proceeds, deception, receipts of fraudulent proceeds, and any violations of Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) laws, as well as dishonest acts.

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The director also stated that individuals who abuse personal and financial information, as well as engage in identity theft and breach of confidentially, will face penalties under the new legislation.

Emefiele to return Nigeria economy to where it was when he was young

Godwin Emefiele, the Governor of the Central Bank of Nigeria has revealed his one wish when he leaves his position.

He claims that if he can view the Nigerian economy as he did when he was young at the conclusion of his term as a policymaker, he will be extremely satisfied.

CBN under the leadership of Emefiele has introduced no less than 37 intervention programmes to boost the economy.

Source: Legit Newspaper

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