CBN Threatens To Penalize BVN Violators Set Policies | Nigerian News
In its revised regulatory framework for Bank Verification Number (BVN) operations, the Central Bank of Nigeria (CBN)has stated that violators will face sanctions.
This was revealed in a circular addressed to all deposit money banks, mobile money operators, super agents, and payment service providers, titled Issuance of the revised regulatory framework for Bank Verification Number operations and watch-list for the Nigerian banking industry.
The CBN, the Nigeria Inter-Bank Settlement System (NIBSS), banks, other financial institutions, and bank customers were all named as watch-list stakeholders in the circular.
According to the circular, the following infractions by participants will result in appropriate penalties:
Misuse of the BVN watch-listing process for victimization; improper account/wallet linking (except Tier 1); and any other infraction(s) as determined by the CBN.
The CBN stated that within 24 hours of NIBSS making BVN available, it would ensure that all operated accounts/wallets (except Tier 1) (including accounts/wallets (except Tier 1) opened through agents) were linked with the signatories BVNs.
It also stated that within 180 days of the framework’s issuance, 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.
Check that all signatories, directors, and beneficial owners’ BVNs are linked to their respective non-individual accounts/wallets (except Tier 1).
The CBN Circular:
Fees for accessing information from the BVN database will be determined by the CBN.
Participants in the BVN must ensure that risk mitigation measures are in place to reduce operational risks. The BVN operations must be resistant to long-term operational failures.
For the banking industry, a Watch-List will be kept. The Watch-List contains BVN records of individuals who have been confirmed to be involved in the Framework’s breaches.
All individuals who are dissatisfied with their BVNs being watch-listed must make formal requests for delisting through the initiating participant. Only the participant who placed an individual’s BVN on the Watch-list has the ability to request delisting.
The Central Bank of Nigeria will penalize any participant who fails to perform its specified responsibilities.
Latest Nigerian News