The Central Bank of Nigeria (CBN) has issued a new rule barring the Bank Verification Number (BVN) violators from opening new bank accounts.
The policy is contained in a Revised Regulatory Framework for Bank Verification Number (BVN) operations and Watch-List for the banking industry released by the apex bank in its Update Report circular.
According to the CBN, the new framework was designed to enhance the effectiveness of customer due diligence and Know Your Customer (KYC) processes.
In the circular, the Director, Payments System Management Department, Musa Jimoh, explained that the watch-list is a database of customers identified by their BVNs, who have been involved in confirmed cases of breaches.
He explained that under the new framework, breaches on the part of customer could see the individual getting barred from entering a new relationship with any participant (banks).
He said, “The new framework further stipulates that a customer with watch-listed BVN shall not reference accounts, access or guarantee credit facilities, thus, breaches it continued on the customer’s part include – use of forged documents, forgery, compromise, complicity and connivance.
The CBN described the policy as part of its overall strategy for promoting a safe and efficient banking and payment system.
