Nigerian Banks Have Been Given A Deadline To Review Dead Customers BVN

The Central Bank of Nigeria (CBN) has asked banks and other financial institutions to notify the Nigeria Interbank Settlement System (NIBSS) of a deceased customer’s Bank Verification Number (BVN) within 24 hours of confirmation.

The directive is included in the apex bank’s modified BVN guideline, which was signed by Musa Jimoh, the bank’s Director of Payment System Management.

The circular read, “Within 24 hours of confirmation, report the BVNs of confirmed deceased clients to NIBSS for designation as “Deceased” on the BVN database.”

The banks are also expected to delist the BVN from the watch-list using the watch-list report supplied by participants and duly certified by the institution’s Managing Director/CEO, as well as clearance from the CBN’s Director, Risk Management Department.

According to Jimoh, the CBN’s move was in conformity with the powers assigned to the regulator by the Central Bank of Nigeria Act, 2007 (CBN Act) and the Banks and Other Financial Institutions Act (BOFIA) 2020.

According to the amended regulatory framework for BVN operations, violators will face penalties.

The framework improves the effectiveness of client due diligence and Know Your Customer processes as part of the purpose of promoting a safe and efficient banking and payment system.

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

The circular listed the CBN, the Nigeria Inter-Bank Settlement System (NIBSS), banks, other financial institutions, and bank clients as watch-list parties.

According to the circular, misuse of the BVN watch-listing process for victimization; inappropriate linkage of accounts/wallets (except Tier 1); and other infraction(s) as determined by the CBN would result in fines.

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