BVN: Groups back court, allege banks complicit in illicit money

Respect individual customer’s rights – Lawyer

Motolani Oseni, Adesola Afolabi, Lagos

As expected, sharp reactions have continued to trail the recent directives by the Federal High Court, Abuja, ordering the Central Bank of Nigeria (CBN), and the Deposit Money Banks (DMBs) in the country to freeze all accounts in their custody and the balances therein without a Bank Verification Number (BVN).

The same court also ordered the commercial banks to disclose the details of all such accounts, their owners, among other issues, while also making an interim order directing the banks to freeze all the said accounts by stopping all outward payments, operations, or transactions, pending the hearing of the substantive application seeking the forfeiture of the balances in the accounts to the Federal Government.

The BVN project was initiated by the Central Bank of Nigeria CBN to uniquely verify the identity of each Bank’s customer for ‘know your customer’ (KYC) purposes, protect bank customers from fraud and to strengthen the banking system.

But speaking to one of our correspondents on the development, National President, Bank Customers Association of Nigeria (BCAN), who was also a former Registrar, the Chartered Institute of Bankers of Nigeria (CIBN), Dr. Uju Ogubunka, said that the association, before the end of the week, will meet and come out with a position on the financial issues as regards to the BVN.

In his reaction, Chairman of the Coalition Against Corrupt Leaders (CACOL), Debo Adeniran, said banks were culpable in the illicit funds being kept with them, as they use these funds to trade.

He said: “Some people have actually abandoned huge amount of money in some of these banks, but the banks don’t want to cooperate because they enjoy free money to trade.

So, they are also enjoying illicit money to remain in business so that they can trade with it. “If you remit up to N1million, you will be reported to the Nigerian Financial Intelligence Unit (NFIU).

Somebody can decide to remit N950, 000 into several accounts that will add up to N1billion.

“But once there is BVN, all these funds will be connected, and the money remitted into such banks would have been added up if it is more than what can be defended.”

“If someone does genuine business abroad and wants to repatriate it, he will do that through the normal channel. “The dishonesty pervades the atmosphere which is why many people don’t like the Buhari administration.

“Some certain people could be understandable unless the CBN makes provision for them to do their data capture wherever they are. They can do it and pass to the home bank. Most of these banks have branches abroad. They actually advertise the branches of these banks in all the countries of the world.”

According to the rights’ activist, “Some people deliberately avoided it because they know that the funds are not acceptable to the Nigerian extant laws and they know that the businesses they are doing cannot bring such humongous amount of money. BVN is a magic wand that stops all these excesses.”

Also, a legal expert, Barrister Rafiu Bello, said there ought to be a balance between law enforcement and rights of individuals.

According to him, although the government has supervisory power to ensure that the provision of the Money Laundering Act, the Central Bank of Nigeria Act and the Bank and Other Financial Institutions Act are complied with, the court of law as a balancing institution comes into play as to balancing the powers of the state and the rights of law abiding citizens.

He said: “But to every general rule, there must always be exception. There are cases of people abroad (Diaspora Nigerians) who have not been able to come and do their BVN. “For instance, I have an employee who does not have a means of identification yet; and he is trying to get a National Identity Card to enable him to regularise his account; but he cannot withdraw from the account pending when he will get his BVN; but the irony is that he can’t get the BVN without the National I.D card.”

“If an order is made for such a person to forfeit his funds, that will be infringing on his right to property because such person is genuinely not a money launderer and a criminal”.

Also, Managing Director and Chief Executive Office of Enterprise Stockbrokers Plc, Mr. Rotimi Fakayejo, has lauded the Federal High Court order mandating the freezing of all accounts without a Bank Verification Number (BVN).

According to Fakayejo, the monetary authorities have given ample time for individuals and corporate bodies to regularize their accounts and register their BVN.

He said: “What I think the court order could do is to relax the order for account holders in Diaspora to prove that these accounts belong to them”.

On the issue of Nigerians condemning the court order, Fakayejo said: “It was high time Nigerians stood up and brace the issue of corruption once and for all. “The idea of BVN arose to curb corruption, and if we are beginning to see a positive effect, this should not be discouraged”.

Fakayejo also said that the freezing and unveiling of the corporate accounts that are not BVN compliant and are not registered with the CAC will help to further unearth corruption and release funds to government coiffeurs.

He observed that the banks may be behind the uproar, seeing that the monies locked in these accounts are interest free and free funds for them.

He thus lauded the directive, stating that it was the right steps towards getting it right in the country.

For the Federal Government, the freeze order to forfeit funds in these accounts obtained at the weekend through the Federal High Court will be an additional source of revenue to the government potentially running into billions of Naira as individuals involved in illegal activities will be unwilling to come forward to claim such funds, as that could result in their prosecution.

Since the introduction of the BVN by the CBN a few years ago, compelling bank customers to comply or risk losing their money in the banks, or not being able to carry out bank transactions including withdrawals and transfers, millions of Nigerians have complied.

But the issues of illicit funds and corruption, it was learnt, may have compelled the government take a closer monitoring of banks’ activities.

The Daily Times, however, gathered that bank Registrars and other stakeholders will meet today, Tuesday, to take a position on the court’s directives.