The Central Bank of Nigeria has said that accounts without a Bank Verification Number (BVN) and national identification number (NIN) will be frozen.
The Apex Bank, in a circular issued on Friday, said it has directed a “Post no Debit” restriction on all bank accounts without BVN and NIN, effective April 2024.
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“As part of its effort to promote financial system stability, it becomes necessary to strengthen the Know Your Customer (KYC) procedures in financial institutions under the purview of the Central Bank of Nigeria (CBN),” the statement read.
“Accordingly, the CBN hereby issues an amendment to Section 1.5.3 of the Regulatory Framework for Bank Verification Number (BVN) Operations and Watch List for the Nigerian Banking Industry (The Guidelines).
“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 and 3 accounts and wallets for individuals to have BVN and NIN.”
The CBN added that for all existing Tier-1 accounts or wallets without BVN or NIN, effective immediately, any unfunded account or wallet shall be placed on “Post no Debit or Credit” until the new process is satisfied.
It said that effective March 1, 2024, all funded accounts or wallets shall be placed on “Post No Debit or Credit” and no further transactions shall be permitted.
The Apex Bank further said that the BVN or NIN attached to and/or associated with all accounts and wallets must be electronically validated by January 31, 2024.
Meanwhile, a Post-No-Debit alert is a directive that restricts a bank customer from withdrawing, transferring funds, or even making any transactions on his or her bank account.