THE Central Bank of Nigeria (CBN) has declared that financial institutions and customers that violate the framework of the Bank Verification Number (BVN) would face sanctions.
This was stated in a circular issued by the CBN to all deposit money banks (DMBs), mobile money operators, super agents, and payment service providers in its bid to promote financial system stability.
The penalties listed includes a N2,000,000 per infraction/customer for financial institutions having a customer operating an account without BVN, with 15 per cent of the total amount credited into the account during the period infraction exists and N20,000 penalty per infraction/customer per day after the infraction exists.
The circular centered on the issuance of the revised regulatory framework for BVN operations and watch-list for the Nigeria banking industry.
According to the CBN, the framework defines the operations of BVN as well as the establishment and operations of a watch-list for the Nigerian banking industry, to address the increasing incidence of frauds and to enhance public confidence in the banking industry.
The apex bank noted that “the following infractions by participants shall attract appropriate penalties.”
The infractions include misuse of the BVN watch-listing process for victimization, improper linking of accounts or wallets (except Tier 1); and other infractions, as may be determined by the CBN.
The Central bank said it would ensure all operated accounts or wallets, including the ones open through agents (except Tier 1), are linked with the signatories’ BVNs within 24 hours of NIBSS making BVN available.
It added that operators must enroll all mobile money wallets (except Tier 1) subscribers on the BVN database and link their wallets (except Tier 1) with their BVNs within 180 days of the issuance of this framework.
“Ensure that BVN details of all signatories, directors and beneficial owners are linked to their respective non-individual accounts/wallets (except Tier 1),” a part of the circular said.
The apex bank further stated that it is mandatory for non-resident non-Nigerian directors of corporate accounts to have a BVN, adding that the failure to capture customers’ biometrics and biodata in line with the BVN Framework comes with N2,000,000 penalty.
It said failure to report customers’ BVN for watch-listing, as per infraction or customer, will attract a N200,000 penalty per infraction or customer.
