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CBN Cracks down Harder on Accounts Without BVN

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The Central Bank of Nigeria (CBN), has directed other Financial Institutions (OFIs), which consist of Micro Finance Banks (MFBs), Primary Mortgage Institutions, Development Finance Institutions (DFIs), Discount House, Bureaux-de-change, among others to suspend all accounts without Bank Verification Numbers (BVN).

The CBN directive mandates that accounts without BVN should be placed on a ‘post no debit’ status which basically acts as a freeze on the account with withdrawals from such account becoming impossible.

The CBN made this mandate in a circular signed by director of Other Financial Institutions supervision department, Mr. Adedeji Adesemoye in which it stated that once an account had complied with the BVN order, then such account can be reinstated.

The circular stated; “following the expiration of the extended deadline of December 31, 2017 for your customers to enroll and/or submit their BVN details to your institutions, you are required to place all accounts without BVN on a ‘post no debit’ status. However, credit lodgments inclusive of deposits and inward transfers, maybe received into such accounts.

“You are required to continue to enroll customers of such accounts and only remove the ‘post no debit’ restriction when a valid BVN has been obtained and submitted by the customer or the customer has been duly enrolled by your institution. Our earlier directive on the conspicuous display of notices sensitizing customers n BVN in the banking hall”.

The CBN in the circular stated that they would monitor the exercise and would punish non-compliance. “Please note that this directive takes effect immediately and the CBN will continue to monitor compliance. Non-compliance will be met with appropriate sanctions,” the circular noted.

 

Famutimi Femi is a writer for theheraldng. He is also a lawyer by trade. His hobbies include reading and writing, he also loves Renaissance art.

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