The Central Bank of Nigeria (CBN) has declared that a “Post no Debit” restriction on all bank accounts without Bank Verification Number (BVN) and National Identification Number (NIN) will commence in April 2024.
The CBN made this known in a circular issued by the apex bank and sent to all deposit money banks in the country on Friday, December 1, 2023.
‘Post No Debit’ is a restriction imposed by banks on specific accounts, preventing customers from making withdrawals, transfers, or any other transactions from their accounts.
This freezes the funds in the account, rendering it inaccessible for the duration of the restriction.
The CBN added that all the BVN or NIN attached to and/or associated with AL accounts/wallets must be electronically revalidated by January 31, 2024.
The CBN stated: “As part of its efforts in promoting financial system stability, it becomes necessary to strengthen the Know Your Customer procedures in financial institutions under the purview of the Central Bank of Nigeria.
“Accordingly, the CBN hereby issues an amendment to Section 1.5.3 of the Regulatory Framework for Bank Verification Number Operations and Watch List for the Nigerian banking industry.
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“In this regard: it is mandatory for all Tier-1 bank accounts and wallets for individuals to have BVN and/or NIN. It remains mandatory for Tiers 2 & 3 accounts and wallets for individual accounts to have BVN and NIN.
“The process for account opening shall commence by electronically retrieving BVN or NIN related information from the NIBSS BVN or NIMC’s NIN databases and for same to become the primary information for onboarding of new customers.
“All existing customer accounts/wallets for individuals with validated BVN shall be profiled in the NIBSS ICAD immediately and within 24 hrs of opening accounts/wallets.”
The apex bank noted that any unfunded account/wallet will be placed on “Post No Debit or Credit” until the new process is satisfied.
It added: “Effective immediately, no new Tier1 accounts and wallets should be opened without BVN or NIN.
“For all existing Tier1 accounts/wallets without BVN or NIN. Effective immediately, any unfunded account/wallet shall be placed on Post No Debit or credit until the new process is satisfied.
“Effective April 1, 2024, all funded accounts or wallets shall be placed on Post No Debit or Credit, and no further transactions permitted.
“The BVN or NIN attached to and/or associated with all accounts/wallets must be electronically revalidated by January 31, 2024.”
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