CBN Introduces Stricter BVN Regulations to Combat Fraud

The Central Bank of Nigeria (CBN) has rolled out stricter enrollment and data access regulations concerning the Bank Verification Number (BVN) to mitigate suspected fraudulent activities, beginning May 1.

This announcement was made in a statement on Friday, which included an addendum to the ‘Revised Regulatory Framework for Bank Verification Number (BVN) Operations and Watch-List for the Nigerian Banking Industry 2021,’ signed by Musa Jimoh, the Director of the Payment System Policy Department.

The CBN emphasized that only individuals who are at least 18 years old can enroll for a BVN, while modifications to phone numbers associated with a BVN will be limited to a single change.

The central bank introduced these measures as part of the ‘Revised Regulatory Framework for Bank Verification (BVN) and Watch-List for the Nigerian Banking Industry 2021’ to foster a more stable financial sector.

The CBN further stated that financial institutions are required to implement and maintain a temporary watchlist for any BVNs suspected of being involved in fraud as reported by any financial body.

A BVN can remain on this temporary watchlist for a maximum of twenty-four hours, during which time the owner of the BVN will be contacted to clarify any issues related to the flagged transactions.

"Enrollment for BVN is to be limited to individuals aged eighteen (18) and above. Changes to phone numbers linked to a BVN are permitted only once," the CBN reiterated.

In addition, the CBN asserted its exclusive rights to access BVN databases and to regulate which financial institutions can access these databases.

"Only financial institutions licensed by the Central Bank of Nigeria (CBN) will be granted access to the BVN databases. Nonetheless, the CBN reserves the right to permit access under special conditions, adhering to current laws,"

stated the CBN.

These new regulatory adjustments form part of the CBN’s strategy to combat financial crimes effectively.

Earlier this week, the Bank issued a new set of regulations titled ‘Baseline Standards for Automated Anti-Money Laundering (AML) Solutions for Financial Institutions in Nigeria,’ aimed at enhancing automatic measures against money laundering and financing of terrorism.