Banks get cutoff time on dead clients’ BVN

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CBN

The Central Bank of Nigeria (CBN) has guided banks and other monetary organizations to report Bank Verification Number (BVN) of a dead clients to Nigeria Interbank Settlement System (NIBSS) inside 24 hours of affirmation.

The mandate is contained in the modified BVN rule gave by the peak bank and endorsed by its Chief, Installment Framework The executives, Musa Jimoh.

“Report the BVNs of confirmed deceased customers to NIBSS for designation as “Deceased” on the BVN database within 24hrs of confirmation,” the circular said.

The banks are also expected to use the watch-list report submitted by participants and duly endorsed by the Managing Director/CEO of the Institution, with clearance from the Director, Risk Management Department of CBN to delist the BVN from the watch-list.

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Jimoh said the CBN’s move aligned with the powers conferred on the regulator, under the Central Bank of Nigeria Act, 2007 (CBN Act), and the Banks and Other Financial Institutions Act (BOFIA) 2020.

The revised regulatory framework for BVN operations also stated that violators would be sanctioned.

The framework enhances effectiveness of customer due diligence and Know Your Customer processes as part of the strategy for promoting a safe and efficient banking and payment system.

In a circular entitled: “Issuance of revised regulatory framework for Bank Verification Number operations and watch-list for the Nigerian banking industry”, and addressed to  deposit money banks, mobile money operators, super agents and payment service providers.

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The circular listed watch-list stakeholders to include the CBN, Nigeria Inter-Bank Settlement System (NIBSS), banks, other financial institutions and bank customers.

Some portion of the roundabout expressed that abuse of the BVN watch-posting measure for exploitation; inappropriate connecting of records/wallets (aside from Level 1); and other infraction(s), as might be dictated by the CBN will draw in sanctions.

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