CBN to sanction BVN misusers on watch list

CBN to ensure all bank accounts are linked with signatories’ BVN

By Jeph Ajobaju, Chief Copy Editor

Misusers their Bank Verification (BVN) are in for sanction by the Central Bank of Nigeria (CBN) which wants them placed on the watch list of the CBN, Nigeria Inter-Bank Settlement System (NIBSS), banks, other financial institutions, and bank customers.

The CBN disclosed this in a circular on “Issuance of revised regulatory framework for Bank Verification Number operations and watch-list for the Nigerian banking industry” sent to banks, mobile money operators, super agents, and payment service providers.

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“The following infractions by participants shall attract appropriate penalties: Misuse of the BVN watch-listing process for victimisation; improper linking of accounts/wallets (except Tier 1); and other infraction(s), as may be determined by the CBN,” the circular said.

The CBN pledged to ensure all operated accounts/wallets (except Tier 1) (including accounts/wallets (except Tier 1) opened through agents) are linked with the signatories’ BVNs within 24 hours of the NIBSS making BVN available.

Operators must “enroll all mobile money wallets (except Tier 1) subscribers on the BVN database and link their wallets (except Tier 1) with their BVNs within 180 days of the issuance of this framework;

“Ensure that BVN details of all signatories, directors, and beneficial owners are linked to their respective non-individual accounts/wallets (except Tier 1).”

Other key points

The circular says

• The CBN shall determine fees payable for accessing information from the BVN database.

• BVN participants shall ensure that risk mitigation measures are in place to minimise operational risks.

• BVN operations shall not be susceptible to sustained operational failures.

• A Watch List shall be maintained for the banking industry which contains BVN records of individuals involved in breaches outlined in the Framework.

• All aggrieved individuals whose BVNs are watch-listed shall make formal requests for delisting through the initiating participant.

• Only a participant that places an individual’s BVN on the Watch List can request for delisting.

• Any participant who fails to perform its stipulated responsibilities shall be penalised by the CBN.

Nairametrics recalls that the CBN, in collaboration with the Bankers’ Committee, deployed a centralised the BVN System in February 2014.

It was part of the overall plan to ensure the effectiveness of Know Your Customer (KYC) Principles and promote a safe, reliable, and efficient payments system.

BVN gives each bank customer a unique identifier number.