The Central Bank of Nigeria, CBN, plans to clamp down on bank accounts with no bank verification number, BVN, and national identification number, NIN, in 2024.
In a memo made available to the press last Friday, the CBN said all existing bank accounts without a linked BVN and NIN will no longer receive funds, and make withdrawals and transfers starting 1 March 2024.
However, the apex bank directed that all unfunded accounts be placed on ‘Post No Debit or Credit’ immediately until the owners link their BVN/NIN.
The move, the CBN said, is “part of its effort in promoting financial system stability” and “strengthen the Know Your Customer (KYC) procedures in financial institutions.”
Similarly, commercial banks are now barred from opening new accounts without the customer’s BVN 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’s memo reads.
In cases where a potential customer does not have a BVN or NIN, the CBN advised the banks to “commence the process of enrolling the individual onto the BVN database.”
Furthermore, all account holders are to electronically revalidate their BVN/NIN by 31 January 2024.
The memo also disclosed that the apex bank would commence a “comprehensive BVN and NIN audit shortly”, and where violations are identified, appropriate penalties shall follow.
