the apex bank is currently auditing the BVN process in banks ‘to ensure system integrity’.and banks are aware of the ongoing audit exercise and that at the right time, sanctions will apply to culpable lenders.
The Central Bank of Nigeria (CBN) is probing banks’ enrollment of their customers in the Bank Verification (BVN) platform to ensure the integrity of the process.
Many banks are breaching the BVN enrolment process.
In some cases, customers BVNs are attached to wrong accounts due to improper validation. The practice, if not addressed, could present serious identity crisis in the financial system.
Besides, some banks are not submitting names of their customers identified through their BVNs to be involved in suspected fraudulent activities to the apex bank as required by regulation.
The CBN had directed banks to establish a database of their customers identified through their BVNs to be involved in confirmed fraudulent activities.
The directive is contained in the Regulatory Framework for BVN Operation and Watch-list for Nigerian Financial System released by the CBN. The framework is in exercise of the powers conferred on the CBN, by Sections 2 (d) and 47 (2), of the CBN Act, 2007, to promote the development of efficient and effective payments systems for the settlement of transactions.
The watch-list comprises a database of bank customers’ identified by their BVNs, who have been involved in confirmed fraudulent activity in the banking industry.
Confirming the development, Principal Manager, Banking and Payment System Department of the CBN, Olubukola Akinwunmi, said identity theft is a serious challenge that needed to be tackled in the industry and needs the collaboration of all stakeholders.
AkinwunmI, who represented CBN Director, Banking Service Department, ‘Dipo Fatokun, at the Access Bank Anti-Fraud Week Stakeholders’ workshop held in Lagos.