Any customer of Deposit Money Banks that violate the Central Bank of Nigeria’s Bank Verification Number policy will be barred from accessing credit and opening new account.
The CBN said this in a Revised Regulatory Framework for Bank Verification Number (BVN) operations and Watch-List for the banking industry.
The framework was signed by the Director, Payment System Management Department of the CBN, Mr. Musa Jimoh and was released in its Update Report circular.
The CBN stated that the new framework has been designed to enhance the effectiveness of customer due diligence and Know Your Customer.
The director in the circular explained that under the new framework, breaches on the part of customer could see the individual getting barred from entering a new relationship with any bank.
Musa said that where a financial institution chooses to continue an existing business relationship with holders of an account/wallets on the watch-list, the account holder will be prohibited from all electronic channels.
Some of the electronic channels are Automated Teller Machine, Point of Sale , Internet Banking, Mobile Banking, USSD including the issuance of third- party cheques.
“The new framework further stipulates that a customer with watch-listed BVN shall not reference accounts, access or guarantee credit facilities, thus, breaches it continued on the customer’s part include – use of forged documents, forgery, compromise, complicity and connivance.
“Also listed as punishable breaches were: duplicate enrolment, use of fictitious information, receipts of proceeds of deception, deception, receipts of fraudulent proceeds and any infractions on Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) laws, and dishonest acts.
“Others were non-cooperation with efforts (as stipulated in the Regulation on Instant Interbank Electronic Funds Transfer) to reverse wrong credit, erroneous, multiple or duplicated payments or credits; and any infringement of the Cybercrimes (Prohibition, Prevention, etc.) Act. 2015.”he said.
The director also said that those who misuse identity and financial information and indulge in identity theft and breach of confidentiality will be punished in line with the new regulations.
“Banks and other financial institutions involved in BVN operations were instructed by the CBN to ensure all operating accounts/wallets are linked with the signatories’ BVNs within 24 hours of availability,” the circular said.
The CBN, however, said it would continue to monitor industry developments and issue further guidance as might be appropriate in the nearest future.