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    CBN to stop bank accounts without BVN from August 1

    The Central Bank of Nigeria, CBN has said that all customers without the Bank Verification Number, BVN linked to their accounts will not be able to make withdrawal from their bank accounts starting from 1st August, 2017.

    The apex bank said the measure becomes necessary as the absence of a unique identifier in the banking industry is a major challenge inhibiting the effectiveness of the Know Your Customer KYC, principle.

    The statement added, “In view of the foregoing, all OFIs are required to enroll their customers on or before July 31, 2017; conspicuously display notices sensitizing customers on BVN in the banking hall; ensure that all new customers have BVN and forward to the Director, OFIs Supervision Department schedule of customers’ accounts with BVN on Auguast 7, 2017.
    “The BVN is expected to minimise the incidence of fraud and money laudering in the financial system as well as enhance financial inclusion. The BVN enrollment will support the achievement of the zero default credit targets set for the Participating Financial Institutions (PFIs) in the Micro, Small and Medium Enterprises Department Fund (MSMEDF). It will also open opportunities for credit to millions of Nigerians without a standard means of identification.
    “The implementation of the BVN initiative, which started with the customers of Deposit Money Banks (DMBs) has been very successful. However, to avoid a broken identification link in the banking system, it has become necessary to extend the BVN enrolment to the customers of OFIs, especially as some OFIs are located in the rural areas and have customers that may not have enrolled with the DMBs.”
    Source: DAILYPOST
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