By Amaka Ifeakandu
Lagos
Central Bank of Nigeria (CBN) has issued the regulatory framework for the banks verification number ( BVN) operations and watch list for the Nigerian financial industry
A circular signed by Director, Banking and Payment System Department of the CBN, ‘Dipo Fatokun said that the implementation of the framework is with immediate effect
Th e apex bank said that the framework defines the establishment and operations of a Watch-list for the Nigerian Banking Industry, to address the increasing incidences, of frauds, with a view to engendering public confidence in the banking industry
The objectives of the regulatory framework for BVN and Watchlist operations in Nigeria according to the CBN is to clearly define the roles and responsibilities of stakeholders; clarify the operations of the Bank Verification Number (BVN) in Nigeria; to define access, usage and management of the BVN information, requirements and conditions and to provide a database of watch-listed individuals; Other objectives were to outline the process and operations of the Watch-List; and to deter fraud incidences in the Nigerian Banking Industry
On the scope of the operation, the CBN said the framework provides standards for the BVN operations and Watch-list for the Nigerian Banking Industry
It further said that the Watchlist comprises a database of bank customers’ identified by their BVNs, who have been involved in confirmed fraudulent activity in the banking industry in Nigeria
The framework said it is the responsibility of the CBN to conduct oversight on BVN operations and systems, monitor other stakeholders, to ensure compliance, issue circulars to regulated institutions on the operations of the watch-list; review framework for the operations of the watch-list, as the need arises and apply appropriate sanctions for non-compliance with this document; Th e Nigeria Inter-Bank Settlement System (NIBSS) expected to collaborate with other stakeholders to develop and review the Standard Operating Guidelines of the BVN, initiate review of Guidelines, as the need arises, subject to the approval of the CBN, ensure seamless operations of the BVN system, maintain the BVN database, ensure adequate security of the BVN information; an maintain an on-line real-time Watch-list Portal
NIBSS shall put in place a Service Level Agreement (SLA), with relevant stakeholders and provide access to the watch-list database to the Central Bank of Nigeria and comply with the ISO standards for security and business continuity
On the other hand, the nation’s banks would ensure proper capturing of the BVN data and validate same before the linkage with customers’ accounts; Ensure all operated accounts are linked with the signatories’ BVN; Ensure customer’s name on the BVN database is the same in all of his/her accounts, across the Banking Industry
The framework further said that appropriate penalties shall apply to any bank that fails to enlist individuals confirmed to be involved in fraudulent activity
