CBN To Freeze Accounts Without BVN Or NIN Beginning in April 2024
 |
| Central Bank of Nigeria (CBN) |
The Central Bank of Nigeria (CBN) says accounts without a bank verification number (BVN) or national identification number (NIN) will be restricted from April 2024
The Central Bank of Nigeria has directed a “Post no Debit” restriction on all bank accounts without Bank Verification Number and National Identification Number effective April 2024.
“As part of its effort in promoting financial system stability, it becomes necessary to strengthen the Know Your Customer (KYC) procedures in financial institutions under the purview of the Central Bank of Nigeria (CBN),” CBN said.
“Accordingly, the CBN hereby issues an amendment 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).”
“Post No Debit” refers to a restriction that banks place on some accounts, prohibiting users from debiting their accounts for withdrawals, transfers, or any other purpose.
This action essentially freezes the account's funds, making it unavailable while the restriction is in place.
The central bank's circular, which was distributed to all deposit money institutions on Friday, carried the directive from the CBN.
The Central Bank further declared that by January 31, 2024, any BVN or NIN linked to and/or connected to AL accounts/wallets need to be electronically revalidated.
Directors Chibuzo Efobi of the Payments System Management Department and Haruna Mustapha of the Financial Policy and Regulation Department jointly signed the circular.
According to CBN, a requirement of the amendment is that all tier-1 bank accounts and personal wallets have BVN and NIN.
The apex bank added that having a BVN and NIN is still required for individual accounts as well as wallets for tiers two and three.
According to the circular, CBN, “electronically retrieving BVN or NIN-related information from the NIBSS's BVN or NIMC's NIN databases and for same to become the primary information for onboarding of new customers” would be the first step in the account opening procedure.
The amendment further mandates that, within 24 hours of opening an account or wallet, all current customer accounts and wallets for people with verified bank account numbers (BVNs) must be profiled in the Nigeria Inter-Bank Settlement System (NIBSS) industry customer account database (ICAD).
“Effective immediately, no new Tier 1 accounts and wallets should be opened without BVN or NIN,” CBN said.
“For ALL existing Tier1 accounts/wallets without BVN or NIN: Effective immediately, any unfunded account/wallet shall be placed on “Post No Debit or Credit” until the new process is satisfied.
“Effective March 1, 2024, all funded accounts or wallets shall be placed on “Post No Debit or Credit” on March 1, 2024, with no more transactions allowed.
The CBN mandated that by January 31, 2024, every BVN or NIN linked to every account and wallet undergo electronic revalidation.
No comments:
Leave comment here