CBN to freeze bank accounts without BVN, NIN from March 2024
By Sodiq Adelakun
Starting from March 1, 2024, individuals holding Tier-1 bank accounts and wallets in Nigeria will be required to have either the Bank Verification Number (BVN) or National Identity Number (NIN), or both.
This announcement was made by the Central Bank of Nigeria (CBN) on Friday, emphasising the importance of these identification numbers in the banking sector.
The CBN further warned that any funded accounts or wallets without BVN or NIN after the deadline will be placed on “Post No Debit or Credit,” and no further transactions will be permitted.
This move is aimed at promoting transparency and accountability in the banking industry, as well as reducing the risk of fraud and money laundering.
Also, the CBN has mandated that all BVN or NIN attached to and/or associated with all accounts or wallets must be electronically revalidated by January 31, 2024.
The implementation of this policy is expected to have a significant impact on the banking sector, as it will encourage more Nigerians to obtain their BVN or NIN and promote financial inclusion. It will also help to strengthen the country’s financial system and improve the overall economy.
The apex bank addressed to all commercial, merchant, non-interest and payment service banks; as well as Other Financial Institutions (OFIs), and mobile money operators, which was signed jointly by the CBN Director, Payments System Management Department, Chibuzo Efobi and Director, Financial Policy and Regulation Department, Haruna Mustafa.
The apex bank noted that henceforth, all existing customer accounts or wallets for individuals with validated BVN shall be profiled in the NIBSS Industry Customer Account Database (ICAD) immediately and within 24 hours of opening accounts/wallets.
The circular highlighted key amendments to Section 1.5.3 of the Regulatory Framework for Bank Verification Number (BVN) Operations and Watch-List for the Nigerian Banking Industry (The Guidelines).
The central bank said the development was part of its effort in promoting financial system stability by strengthening the Know Your Customer (KYC) procedures in financial institutions under its purview.
Among other requirements, the CBN said it remained mandatory for Tiers 2 and 3 accounts and wallets for Individual accounts to have BVN and NIN.
It stated that the process for account opening shall commence by electronically retrieving BVN or NIN related information from the NIBSS’ BVN or NIMC’s NIN databases and for same to become the primary information for onboarding of new customers.
The CBN also ordered for the immediate implementation of the new policy, stressing that no new Tier-1 accounts and wallets should be opened without BVN or NIN.
Also, for all existing Tier-1 accounts/wallets without BVN or NIN, the CBN said effectively, any unfunded account/wallet shall be placed on “Post No Debit or Credit” until the new process is satisfied.
In order to ensure consistent and complete adherence to the new procedures, the CBN has instructed Executive Compliance Officers, Chief Compliance Officers, and Heads of Compliance Functions to familiarise themselves with the applicable Guidance Notes for all institutions regulated by the CBN.
The CBN will conduct a thorough audit of BVN and NIN records, and any violations discovered will be met with appropriate penalties.
Furthermore, the CBN has advised all financial institutions under its supervision to strictly comply with restrictions on Tier-1 accounts/wallets, including transaction value limits and cumulative balances.
