In line with its mandate of promoting financial system stability, the Central Bank of Nigeria (CBN) has directed the Nigerian Banking Industry to flag suspected fraud Bank Verification Numbers (BVNs) after a 24-hour watchlist from May 1st.
According to a late Thursday circular signed by Musa Jimoh, the Director of the Payment Systems Policy Department, CBN introduced this new policy in an amended version of the 2021 Revised Regulatory Framework for Bank Verification Number (BVN) and Watch-List for the Nigerian Banking Industry.
The circular, titled “Addendum to the Revised Regulatory Framework for Bank Verification Number Operations and Watch-List for the Nigerian Banking Industry”, disclosed that the new framework introduces four new policies which mandate Financial Institutions to establish and maintain a temporary watchlist for BVNs implicated in suspected fraudulent transactions reported by a financial institution.
The statement reads, “A BVN may remain on this temporary Watchlist for a maximum period of twenty-four (24) hours, during this period, the BVN owner shall be contacted to provide clarification regarding the identified transaction(s).”
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For the BVN enrolment age requirement, the circular reads, “Enrolment for BVN is restricted to individuals who have attained the age of eighteen (18) years and above.”
For the restrictions on phone number amendments, the circular explained that updates on phone numbers linked to a BVN shall be allowed only once.
For Access to BVN data, the statement reads, “Access to the BVN databases shall be exclusively granted to Central Bank of Nigeria (CBN) licensed financial institutions. Notwithstanding this provision, the Central Bank of Nigeria (the Bank) reserves the right to approve access to the BVN databases in extenuating circumstances and in accordance with the provisions of extant laws.”
CBN urges financial institutions to act accordingly as implementation of the new provisions shall take effect from May 1, 2026.
