CBN issues warning to BDCs on BVN

By Ali Smart

The Central Bank of Nigeria (CBN) has ordered Bureau de Change operators to be ready to tender the Bank Verification Number (BVN) of customers effective August 1st, 2015.

This directive is part of the apex bank’s measures to ensure greater transparency in the transactions.

The CBN in a circular released in Abuja on Thursday, said the provision of customers’ BVN “must be included in the Returns to the CBN.”

The circular, signed by the Director, Financial Policy and Regulation Department, CBN, Kevin Amugo, noted that “in the case of corporate customers, the BVN of a Director or an authorised signatory of the entity must be provided.”

The CBN also mandated “all licensed BDCs to provide the BVN of all their Directors before 15th August 2015, as failure to meet this requirement may affect their continued participation in the foreign exchange market.”

According to the circular, “BDC operators should please note that any BDCs that fails to provide the required information in its returns, or provides a wrong BVN, would be penalised. First offenders will be required to pay a fine of One Million Naira (N1,000,000), while any subsequent violation of the requirement may lead to the revocation of the operating license of the BDCS.

Read also: CBN bars BDCs from funding imports

“The list of all licensed BDCs would be provided by the Central Bank of Nigeria, to the Nigerian Interbank System (NIBBS), to enable the country provide the necessary hardware token that would be used by the BDCs in accessing the NIBSS website.”

The apex bank also noted that the “NIBSS has been directed to make a portal available on its website to facilitate access for the confirmation/validation of the BVN number of the BDCs’ customers.”

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