The Central Bank of Nigeria (CBN) has banned manual individual account opening across the banking industry. It thereby directs that enrolment of new customers by manually creating a customer profile and subsequently attaching a Bank Verification Numbers (BVN) or National Identity Numbers (NIN) “is hereby strictly prohibited.”
According to the apex banking regulatory institution, where a BVN or NIN exists for a new customer, the regulated financial institution shall use same to electronically check the BVN database at Nigeria Interbank Settlement System (NIBSS’) portal and NIN at NIMC portal; electronically retrieve and retain the underlying details (Names, DoB, Gender, Phone No, etc) as the authentic customer’s details, and where authentication is successful, other procedures and customer information required to complete the onboarding process can continue.
This formed part of the recent circular signed by the Director, Payment System Management Department, CBN, Mr Chibuzo Efobi and Director Financial Policy and Regulations Department, CBN, Mr Haruna Mustapha.
It noted that the mandate was part of the apex bank’s effort in promoting financial system stability which has led to it’s amendment of Section 1.5.3 of the Regulatory Framework for BVN Operations and Watch-List for the Nigerian Banking Industry (Guidelines).
The CBN further noted that 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, and all existing customer accounts/wallets for individuals with validated BVN shall be profiled in the NIBSS Industry Customer Accounts Database (ICAD) immediately and within 24hrs of opening accounts/wallets.”
The circular further stated that where any or all of the underlying details of the BVN or NIN are inconsistent with the details provided by the potential customer, that onboarding process shall cease immediately.
The potential customer may wish to follow established protocols and seek to update the BVN or NIN details.
“Where a potential customer does not have a BVN or NIN, the regulated financial institution may wish to: For BVN – commence the process of enrolling the individual onto the BVN database and be guided by the extant protocols issued by NIBSS; For NIN — advise the customer to visit the nearest NIN enrolment centre; upon receipt of the BVN or NIN, follow the process described above to complete the onboarding process, “it noted.
According to the CBN, the use of any ‘placeholder BVN or NIN” to support the creation of any customer profile is strictly prohibited and shall be sanctioned accordingly.
Additionally, regulated financial institutions are required to profile ALL their customers’ accounts/wallets on NIBSS’ ICAD, tag them with their unique identifiers within 24hrs of generating and assigning an account number to a customer (new or existing).
Other requirements of the Guidelines and related regulations remain valid and applicable.
According to the apex banking sector regulator, this is part of its effort in promoting financial system stability,adding that, it becomes necessary to strengthen the Know Your Customer (KYC) procedures in financial institutions under the purview of the CBN.
However, the Regulatory Framework for BVN issued by the CBN in 2021 stipulates that customers can only change their records due to certain conditions spelt out in the document and after being cleared by relevant authorities.
READ ALSO FROM NIGERIAN TRIBUNE
and then