The central bank on Friday announced that all bank accounts without Bank Verification Number (BVN) and National Identification Number (NIN) will be placed on “Post no Debit” effective April 2024.
The new directive was contained in a circular issued by the central bank and sent to all deposit money banks.
The central bank also stated that all the BVN or NIN attached to and associated with all accounts/wallets must be electronically revalidated by 31 January 2024.
Details
Tier 1 accounts and wallets for individuals are henceforth required to have BVN and/or NIN. Accounts of this type could, until the new directive, be opened with minimal or no form of documentation, the central bank said.
“Effective immediately, any unfunded (Tier1) account/wallet ( without a BVN and/or NIN) shall be placed on ‘Post no Debit or Credit’ until the new process is satisfied,” the CBN added.
In the same vein, beginning from 1 March 2024, any such accounts or wallets that are funded will carry the “Post no Debit or Credit” tag and be forbidden from all transactions.
The bank also expects the BVN or NIN linked to all accounts/wallets to be revalidated electronically not later than 31 January 2024.
For Tiers 2 and 3 accounts and wallets, which statutorily require higher levels of documentation to open, it remains mandatory for individual accounts to have a BVN and/or NIN.
“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 said.
It noted that the move is targeted at ensuring financial system stability and will help strengthen the Know Your Customer procedures in the financial institutions within the ambit of the CBN’s supervision.
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