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CBN announces plans to suspend bank accounts without BVN or NIN


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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