CBN plans to close bank accounts without BVN to clean up the sector and reduce fraud
BVN is a unique identifier capturing biometric data used to verify customer identities and prevent fraud
There are 24 commercial banks operating in Nigeria including Access, UBA, Zenith, and other financial institutions that require BVN…..CONTINUE READING
The Central Bank of Nigeria (CBN) has announced plans to close millions of bank accounts across various financial institutions that are not linked to a Bank Verification Number (BVN).
Blaise Ijebor, the CBN director of the Risk Management Department and Chief Risk Officer, who disclosed the plan at the Prembly Compliance Breakfast Dialogue on Thursday 6 April, said the objective is to clean up the sector and reduce the growing incidence of fraud.
The BVN is a unique identifier that captures the biometric data of bank customers and is used to verify their identities and prevent fraudulent activities.
Speaking further Ijebor noted that the apex bank has been working with the Nigerian Inter-Bank Settlement System (NIBSS) to address the growing incidence of fraud in the sector.
Although he said the financial regulator is looking at doing this very soon he did not however give an indication of when the CBN intends to commence the exercise.
Why is CBN closing bank accounts without BVN
As of April 2, 2023, Legit.ng’s analysis of the NIBSS website indicates that there are only 57.01 million registered BVN numbers out of the total 191.4 million bank accounts in the country, with 133.5 million active.
CBN Ijebor further detailed the importance of closing bank accounts without BVN and highlighted three areas where cybercriminals are exploiting vulnerabilities.
The first is the Tier-1 account, which allows customers to open an account with minimal documentation and is mostly targeted at the unbanked and rural population.
He said:
“This account is dominated by digital banks or fintech firms, and often lacks BVN linkage, which makes it an easy entry point for hackers.”
“Secondly, some banks, especially digital ones, may not meet regulatory requirements, creating a second loophole for fraudulent activity.
“Lastly, hackers can exploit any vulnerability to gain access to bank accounts.”
Ijebor mentioned that they are working on improving agency banking and enabling agents to register BVN, which will help move Tier-1 accounts to Tier-2.
CBN makes adjustments as Naira exchanges at all-time low against US dollar
Meanwhile, in another report, the CBN may have slightly adjusted the official exchange rate of the naira against the United States dollar
The Naira has been trading at an all-time low against the dollar above N463 since the start of Q2 2023
Naira depreciated against the US dollar across all foreign exchange markets on Wednesday, April 5, 2023…..CONTINUE READING
For Publication of Press Releases, Statements, Advert Inquiries, Send An Email To Newshour42@gmail.com
Source: NewsHour.ng | Read More
0 Comments