CBN Set To Close Millions of Bank Accounts In Nigeria, See Why

CBN is set to close millions of Bank Accounts in Nigeria over lack of BVN linkage.

 

Truetells Nigeria reports that the Central Bank of Nigeria (CBN) has recently made an announcement to address the increasing incidents of fraud in the financial sector.

 

As part of their efforts to combat this problem, the CBN has planned to close millions of bank accounts that are not linked to a Bank Verification Number (BVN).

 

Truetells Nigeria reports that the BVN is a biometric identification system that was introduced by the CBN in 2014 to uniquely identify customers and reduce cases of fraud in the financial sector.

 

Blaise Ijebor, the CBN Director of the Risk Management Department and Chief Risk Officer, made the announcement during the Prembly Compliance Breakfast Dialogue on April 6, 2023.

 

According to Ijebor, the objective of this initiative is to clean up the financial sector and reduce the growing incidence of fraud. He further explained that the CBN has observed that many bank accounts are not linked to the BVN, making it difficult to track fraudulent activities.

 

The CBN’s decision to close millions of bank accounts that are not linked to the BVN is expected to encourage customers to update their records and link their bank accounts to the BVN. The CBN has also assured customers that the process will be conducted in a transparent and fair manner. The public has been urged to cooperate with the CBN to ensure the success of this initiative in creating a more secure financial sector for everyone.

 

The BVN is a biometric identification system that captures the unique biometric data of bank customers, including fingerprints and facial features. It is a means of verifying the identities of customers and ensur ing that they are who they claim to be. This system has been instrumental in curbing fraudulent activities in the Nigerian financial sector since its introduction in 2014.

 

As part of its efforts to combat the growing incidence of fraud in the sector, the Central Bank of Nigeria (CBN) has been collaborating with the Nigerian Inter-Bank Settlement System (NIBSS). The NIBSS is a payment infrastructure that facilitates the electronic clearing and settlement of inter-bank transactions in Nigeria. The partnership between the CBN and NIBSS has led to the development of various initiatives to enhance the security of the financial sector, including the BVN system.

 

Blaise Ijebor, the CBN Director of the Risk Management Department and Chief Risk Officer, highlighted the importance of the BVN system in reducing cases of fraud in the sector. He also reiterated the CBN’s commitment to working with stakeholders to promote a more secure and transparent financial sector in Nigeria.