CBN Set Date to Freeze Bank Accounts without NIN or BVN

Key Measures Outlined in the Circular:

• “Post No Debit” Restriction: Effective immediately, banks are mandated to apply a “Post No Debit” restriction on all existing Tier-1 accounts or wallets without BVN or NIN. This restriction prohibits withdrawals, transfers, or any debits.
• Fund Restrictions for Funded Accounts: From March 1, 2024, funded accounts without BVN or NIN will face the same “Post No Debit” restriction.
• Revalidation Deadline: BVN or NIN linked to accounts/wallets must undergo electronic revalidation by January 31, 2024.

Comprehensive BVN and NIN Audit:

• The CBN emphasized that a thorough BVN and NIN audit will be conducted shortly, with potential sanctions for identified breaches.

Streamlining Onboarding Process for New Customers:

• To enhance the onboarding process for new customers, the CBN will retrieve BVN or NIN-related information electronically from the National Identity Management Commission (NIMC) or Nigeria Inter-Bank Settlement System (NIBSS) databases.
• Existing accounts with validated BVNs will be profiled in NIBSS’ Identity Confirmation, Authentication, and Verification System (ICAD) within 24 hours of opening.

Enrollment Process for Individuals Lacking BVN or NIN:

• Financial institutions are instructed to initiate the enrollment process onto the BVN database for individuals lacking a BVN or NIN, following guidelines provided by NIBSS.

CBN’s Commitment to Financial Stability and KYC Practices:

• The CBN’s decision to implement these stringent measures aligns with its commitment to promoting financial system stability and reinforcing KYC practices within the country’s financial institutions.

This proactive step by the CBN is geared towards creating a more secure and transparent financial environment, ensuring that KYC standards are rigorously maintained. Stay tuned for updates as the CBN continues to prioritize financial integrity and stability.