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CBN announces plans to suspend bank accounts without BVN or NIN

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CBN announces plans to suspend bank accounts without BVN or NIN

The Central Bank of Nigeria (CBN) has declared its intention to freeze accounts lacking a Bank Verification Number (BVN) or National Identification Number (NIN) starting from April 2024.

In a circular released on Friday, the apex bank directed financial institutions to enforce a “Post no Debit” restriction on existing Tier-1 accounts/wallets without BVN or NIN, preventing customers from withdrawals, transfers, or other debits.

“The Post No Debit or Credit” measure will be implemented immediately for unfunded accounts/wallets, and from March 1, 2024, funded accounts or wallets will also face restrictions. The CBN emphasized the electronic revalidation of all BVN or NIN linked to accounts/wallets by January 31, 2024.

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As part of efforts to enhance financial system stability and strengthen Know Your Customer (KYC) procedures, the CBN plans to conduct a BVN and NIN audit, applying sanctions for identified breaches. The bank also outlined a process for customer onboarding using BVN or NIN-related information.

For individuals without BVN or NIN, the CBN advised regulated financial institutions to enroll them in the respective databases, following protocols issued by the Nigeria Inter-Bank Settlement System (NIBSS).

This move aligns with the CBN’s commitment to promoting a secure financial system and reinforcing KYC protocols in the nation’s financial institutions.

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