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The Central Bank of Nigeria (CBN) has announced its plans to freeze accounts that lack either a Bank Verification Number (BVN) or a National Identification Number (NIN) starting from April 2024.
This move is aimed at reinforcing the stability of the financial system and enhancing Know Your Customer (KYC) protocols.
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As outlined in a circular released on Friday by the CBN’s Directors of Payments System Management and Financial Policy and Regulation Departments, specific steps have been laid out to implement this initiative.
The circular mandates banks to immediately apply a “Post No Debit” restriction on all existing Tier-1 accounts or wallets that do not have a BVN or NIN. This restriction prevents any withdrawals, transfers, or debits from these accounts. Furthermore, funded accounts without BVN or NIN will face the same “Post No Debit” restriction starting from March 1, 2024.
The circular also stipulates that BVN or NIN linked to accounts or wallets must undergo electronic revalidation by January 31, 2024. This requirement is crucial for ensuring the accuracy and currency of the identification information associated with these accounts.
The CBN, in its announcement, emphasized that a comprehensive audit of BVN and NIN compliance will be conducted shortly. This audit is expected to identify any breaches or non-compliance, with potential sanctions for those found to be in violation of the stipulated requirements.
This move by the CBN is not only aimed at bolstering the security and stability of the financial system but also underscores the importance of accurate and up-to-date customer identification information.
The implementation of these measures is part of broader efforts to enhance financial transparency, curb fraudulent activities, and ensure the integrity of the banking system. As the deadline approaches, individuals and businesses are urged to take prompt action to link their accounts with valid BVN or NIN to avoid disruptions to their financial transactions.
