Breaking News

CBN To Fine Banks N2m Per Customer For BVN Infractions

Ololade Omosan-Agie

The Central Bank of Nigeria has said that it will sanction banks and customers who default in its Bank Verification Number rules.

The CBN disclosed this in the bank’s revised framework for BVN .

The document is titled, ‘Regulatory Framework For Bank Verification Number (BVN) Operations.’

The BVN was introduced by the CBN and the Bankers’ Committee in 2014 to promote a safe banking system in the country.

In the new rule, the apex bank said banks who fail in their obligation to operate an account with BVN will be sanctioned with a fine of N2m and 15 per cent of the amount credited into the account during the period.

The customer’s account will be charged N20,000 daily after the infraction exists.

It stated that failure to capture customers’ biometrics and biodata in line with the BVN Framework will attract N2m fine for every infraction per customer.

The apex bank stated that banks that fail to validate in-line with the BVN Framework and BVN SOG will also pay N2m per infraction.

“Failure to correctly report the BVN of deceased customer and Failure to follow due process in confirming and designating a customer as ‘DECEASED’ [will attract] N100,000 penalty per infraction/customer [and] N20,000 penalty per
infraction/customer per day after the infraction exists [respectively],” CBN said.

Banks that fail to use the BVN API only for account/wallet opening, maintenance and operational purposes and ensure full compliance with relevant data privacy laws will be fined N200,000 per infraction/customer.

The bank also said that participants who fail to perform its stipulated responsibilities will be placed in the watch-list and penalised.

The participants are the CBN, Nigeria Inter-Bank Settlement System Plc (NIBSS), Banks/Other Financial Institutions (OFIs) and customers.

About Editor

Check Also

UAE Lifts Travel Ban on Nigerians

At last Nigerians will heave a sigh of relief after a long wait as the …

Leave a Reply