CBN lists solutions to BVN registration challenges

February 26

10:25 2016

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The Economic and Financial Commission (EFCC) has a role to play in the closure of the bank accounts without bank verification numbers (BVN), the central Bank (CBN) has confirmed.

In this circular, the CBN explained the role of the EFCC’s financial intelligence unit, while clarifying other matters arising from BVN registration.

FULL TEXT OF CIRCULAR

You will recall the CBN issued a circular stipulating that any bank customer without the BVN would be deemed to have inadequate KYC, effective November 1, 2015. The Bank also clarified that Nigeria resident’s bank account without the BVN would be operated as “NO CUSTOMER INITIATED DEBIT’’ account, until the account holder obtain and attach the BVN to the account.

It has however come to our notice, that some customers could not link their BVN to their accounts, due to discrepancies between the record on the BVN database and the records on the core banking applications of the DMBs. Such customers approached their bankers for correction, but some of the banks could not effect the corrections.

In view of this, it has become imperative for the CBN to issue the following clarifications;

Corrections of date of birth on BVN record should be allowed once, with supporting documents, evidencing the correct date of birth.

Change of names due to marriage should be allowed with supporting documents, such as marriage certificate/affidavit, etc.

Minor correction of names, due to misspelling e.g. Osikoya written as Oshikoya, should be allowed, with supporting document such as international passport, showing the correct name.

Change of names that are totally different (e.g. Ezra Abu changing to Aminu Umar0 or partially different (e.g. Ezra Abu Jide to Ezra Abu Olubaje) should only be allowed after customer has produced supporting documents to the change of the name, and this should be reported to the Nigerian Financial Intelligence Unit (NFIU) as a suspicious transaction , by the banks

The customers of the BVN database should be same in all his/her accounts, across the banking industry.

Customers that wish to close their accounts should be allowed to do so. Where the account is not linked with the BVN, a payment instrument should be issued in the name in which the account was opened. In case where the balance on the account is more than what is legally allowed on a paper instrument (i.e. #10million) the bank should seek for and obtain clearance for the EFCC (NFIU) before the account can be closed and the balance transferred electronically to another account.

Where the bank raises suspicious on the activity on its customers, Suspicious Transaction Report should be filed with the Nigerian Financial Intelligence Unit.