The Central Bank of Nigeria (CBN) has stated that individuals under its watchlist may be barred from entering a new relationship with any participant (banks) and accessing loans.
The CBN disclosed in its Revised Regulatory Framework for Bank Verification Number (BVN) operations and Watch-List for the Nigerian Banking Industry signed by Mr Musa Jimoh, Director, Payments System Management Department.
The CBN said the framework is to enhance the effectiveness of customer due diligence and Know Your Customer (KYC) processes as part of its overall strategy for promoting a safe and efficient banking and payments system.
What the CBN is saying
Mr. Jimoh stated in the document that those who misuse identity and financial information, indulge in identity theft and breach of confidentiality will be punished in line with the new regulations.
The framework states that customer breaches could result in the individual being barred from entering a new relationship with any participant (banks), and that if a financial institution chooses to continue an existing business relationship with holders of accounts/wallets on the watch-list, the account holder will be prohibited from using all electronic channels, including but not limited to ATM, POS, Internet Banking, Mobile Banking, and USSD, including the issuing of new cards.
The new framework further stipulates that a customer with watch-listed BVN shall not reference accounts, access or guarantee credit facilities, thus, breaches continued on the customer’s part include – use of forged documents, forgery, compromise, complicity and connivance.
Duplicate enrolment, use of fictitious information, receptions of proceeds of deceit, deception, receipts of fraudulent funds, and any other infringement of AML/CFT legislation, as well as dishonest behaviour, are all serious offences.
The CBN however said it would continue to monitor industry developments and issue further guidance as might be appropriate in the nearest future.