We’ll stop accounts not linked to BVN – CBN

The Central Bank of Nigeria (CBN), on Monday, said with effect from August 1, 2017, customers without Biometric Verification Number (BVN) linked to their account will not be allowed to make withdrawals from those accounts.

The Director, Other Financial Institutions Supervision Department, Mrs. Tokunbo Martins, disclosed this in in a circular to other Financial Institutions (OFI), adding that BVN Initiative, which the apex banking regulating body started with Deposit Money Banks (DMBs) customers, has been successful.

She noted that due to broken identification link in the banking system, it became necessary to extend the BVN enrolment to the customers of OFI especially those located in the rural areas of the country, and have customers that may not have enrolled with the DMBs.

According to her, the BVN enrollment will support the achievement of zero default credit targets set for the participating Financial Institutions (FPIs) in the Micro, Small and medium Enterprises Development Fund (MSMEDF).

“It will also open opportunities for credit to millions of Nigerians without standard means of identification,” she explained.

She highlighted that OFIs are required to enroll their customers on or before July 31, 2017; conspicuously display notices sensitising customers on BVN in the banking hall; ensure that all new customers have BVN and forward to the Director, Other Financial Institutions Supervision Department schedule of customers account with BVN on August 7, 2017.

She explained further that the absence of identifier in the banking industry has been a major challenge inhibiting the effectiveness of the Know Your Customers (KYC) principle.

“To address this challenges and complement the existing means of identifications of customers, which include; the Driver’s License; the international/passport; the National identity card; and the permanent Voter’s card; the CBN, in collaboration with the banker’s Committee, launched the BVN project in February 2014.

“The BVN is expected to also minimise the incidence of fraud and money laundering in the financial system, as well as enhance financial inclusion,” she added.