Beginning on March 1, 2024, all accounts without a Bank Verification Number (BVN) and a National Identity Number (NIN) will be unable to complete any transactions, according to a statement from the Central Bank of Nigeria (CBN).
Similarly, the CBN has mandated that BVN and NIN be presented in order to create a bank account.
This is stated in a circular that was released on Friday and that was co-signed by Haruna Mustafa of the Financial Policy and Regulation Department and Chibuzo Efobi, Director, Payment System Management Department.
The circular states that the CBN’s initiatives to tighten Know Your Customer (KYC) practises in financial institutions and promote financial system stability have made the order necessary.
As a result, the apex bank stressed that no new Tier 1 accounts or wallets should be opened without a BVN or NIN and stated that implementation will take effect right now.
Therefore, the CBN declared that, as of right now, any unfunded account or wallet shall be placed on “Post No Debit or Credit” until the new condition is satisfied for all current Tier 1 accounts and wallets without BVN or NIN.
“Post No Debit or Credit” will be applied to all funded accounts or wallets as of March 1, 2024, with no more transactions allowed, according to the circular.
By January 31, 2024, all accounts and wallets linked to and/or associated with a BVN or NIN must undergo an electronic revalidation.
Section 1.5.3 of the Regulatory Framework for Bank Verification Number (BVN) Operations and Watch List for the Nigerian Banking Industry (The Guidelines) is therefore amended by the CBN in light of this.
The CBN further stated that having BVN and/or NIN is required for all Tier-1 bank accounts and wallets, and that having BVN and NIN is still required for individual accounts on Tiers 2 and 3.
The circular made it clear that the first step in opening an account is to electronically retrieve information linked to BVN and NIN from the databases of NIBSS or NIMC. This information would then serve as the main source of information for onboarding new clients.
Part of the circular states, “Within 24 hours of opening accounts and wallets, the NIBSS ICAD shall mediately profile all existing customer accounts and wallets for individuals with validated BVN.”
The attached Guidance Notes, which are relevant to all institutions under CBN regulation, are recommended reading for Executive Compliance Officers, Chief Compliance Officers, or Heads of the Compliance Functions in order to guarantee consistent and complete compliance.
Additionally, a thorough BVN and NIN audit will be carried out soon, and appropriate consequences will be implemented in the event that violations are found.
“Lastly, with regard to limits on transaction values and cumulative balances, all financial institutions under CBN regulation must implement stringent compliance on restrictions on Tier 1 accounts and wallets.”
