The Central Bank of Nigeria (CBN) has disclosed measures to restrict bank accounts on its watch list from getting loans and other banking services. The CBN revealed this in its Revised Regulatory Framework for Bank Verification Number (BVN) operations and Watch-List for the Nigerian Banking Industry and signed by Mr. Musa Jimoh, Director, Payments System Management Department.
According to Jimoh CBN has created a watch list database of customers identified by their BVNs, who have been involved in confirmed cases of breaches.He also stated that the framework will improve and promote a secure and efficient banking and payment system. He said: “All electronic channels should be restricted to holders of an account/wallet on the watch-list, including but not limited to Automated Teller Machines, Point of Sale, Internet Banking, Mobile Banking, USSD, and the issuing of third-party cheques.”
“The new framework also states that a customer with a watch-listed BVN may not reference accounts, have access to credit facilities, or guarantee credit facilities; hence, customer breaches include the use of false papers, forgery, compromise, complicity, and connivance.” According to Jimoh, other violations that could result in sanction include duplicate enrolment, the use of fictitious information, receipts of deception proceeds, deception, receipts of fraudulent proceeds, and any violations of Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) laws, as well as dishonest acts. The director also stated that individuals who abuse personal and financial information, as well as engage in identity theft and breach of confidentially, will face penalties under the new legislation.