Written by Chijioke Nelson
THE Central Bank of Nigeria may have listed a hard path for both the financial institutions and their customers in an effort to deepen compliance to the ongoing Biometric Verification Number project.
The apex bank had launched the BVN exercise in February 2014, as part of the overall strategy to ensure the effectiveness of Know-Your-Customer principle, by assigning each bank customer a unique identity across the nation’s banking industry.
But CBN, while acknowledging the progress so far made towards the enrollment of banks’ customers for the BVN, noted that there was need to clarify grey areas in the process of the enrollment that have already been assessed.
The regulator reiterated that all Deposit Money Banks (DMBs) are now to give more attention to the enrollment of their customers.
Specifically, they are to ensure that 40 per cent of their customers get enrolled on or before December 2014 and 70 per cent record on or before March 30, 2015.
They are also required to speed up measures to fully integrate their core banking system, latest by the end of this month, to ease the enrollment processes.
However, from the perspective of the customers, the financial institutions will now enforce the BVN registration on customers by ensuring that all new loan applicants have the BVN as a condition precedent to drawdown on facilities granted with effect from November 3, 2014.
Warning that the regulator will be particularly involved in the monitoring of compliance, the statement signed by the Director of Banking and Payments System Department, ‘Dipo Fatokun, added that all credit customers of banks must have BVN by December 31, 2014.
The apex also noted that where an existing customer desires to register the BVN with his/her bank, capturing his/her signature and photo identification may not be necessary, as the bank, expectedly, have those records during account opening.
However, where existing customer wants to do a change of name after enrollment of the BVN, due diligence must be exercised and appropriate legal documents presented, before effecting the change.
The Central Bank of Nigeria (CBN) and Nigeria Inter-Bank Settlement System (NIBSS) may have perfected plans to begin the pilot project of the Bank Verification Number (BVN) in May.
The pilot project of BVN, which was scripted to tow the mode of the pilot run of cash-less policy, had started in May in Lagos, with no fewer than 1000 of the 1401 branch network of banks in the state, before the nationwide rollout.
BVN project, through the biometric capturing, was anchored on the need to reduce to barest minimum, incidences of fraud, identity theft, enhancement of credit risk management and financial inclusion.
According to CBN, individual banks will have a database of their respective customers, shared across its branch network, while the Nigeria Inter-Bank Settlement System will host the industry-wide database, and made up of all the lenders’ customers.
This would mean that new account openings from all the banks would be cleared first from NIBSS database, as a foil to identity theft, fraud and multiple identities.
The apex bank had launched the BVN exercise in February 2014, as part of the overall strategy to ensure the effectiveness of Know-Your-Customer principle, by assigning each bank customer a unique identity across the nation’s banking industry.
But CBN, while acknowledging the progress so far made towards the enrollment of banks’ customers for the BVN, noted that there was need to clarify grey areas in the process of the enrollment that have already been assessed.
The regulator reiterated that all Deposit Money Banks (DMBs) are now to give more attention to the enrollment of their customers.
Specifically, they are to ensure that 40 per cent of their customers get enrolled on or before December 2014 and 70 per cent record on or before March 30, 2015.
They are also required to speed up measures to fully integrate their core banking system, latest by the end of this month, to ease the enrollment processes.
However, from the perspective of the customers, the financial institutions will now enforce the BVN registration on customers by ensuring that all new loan applicants have the BVN as a condition precedent to drawdown on facilities granted with effect from November 3, 2014.
Warning that the regulator will be particularly involved in the monitoring of compliance, the statement signed by the Director of Banking and Payments System Department, ‘Dipo Fatokun, added that all credit customers of banks must have BVN by December 31, 2014.
The apex also noted that where an existing customer desires to register the BVN with his/her bank, capturing his/her signature and photo identification may not be necessary, as the bank, expectedly, have those records during account opening.
However, where existing customer wants to do a change of name after enrollment of the BVN, due diligence must be exercised and appropriate legal documents presented, before effecting the change.
The Central Bank of Nigeria (CBN) and Nigeria Inter-Bank Settlement System (NIBSS) may have perfected plans to begin the pilot project of the Bank Verification Number (BVN) in May.
The pilot project of BVN, which was scripted to tow the mode of the pilot run of cash-less policy, had started in May in Lagos, with no fewer than 1000 of the 1401 branch network of banks in the state, before the nationwide rollout.
BVN project, through the biometric capturing, was anchored on the need to reduce to barest minimum, incidences of fraud, identity theft, enhancement of credit risk management and financial inclusion.
According to CBN, individual banks will have a database of their respective customers, shared across its branch network, while the Nigeria Inter-Bank Settlement System will host the industry-wide database, and made up of all the lenders’ customers.
This would mean that new account openings from all the banks would be cleared first from NIBSS database, as a foil to identity theft, fraud and multiple identities.
Culled from thisdaylive.com
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