The Federal Government of Nigeria has found a way to assume control financial balances without Bank Verification Number (BVN) as a Federal High Court sitting in Abuja has solidified every such record by halting every outward installment, operations or exchanges.
The court request may influence more than 15 million financial balances with stores running into billions of naira as, as indicated by the Nigeria Inter Bank Settlement System Plc (NIBSS), the association saddled with enrolling bank clients for BVN, out of the 45.85million ledgers in the nation, just 30,511,506 had been issued with BVN numbers as of October 8, 2017.
The Attorney-General of the Federation, Mr Abubakar Malami (SAN), had established an application looking for a between time arrange coordinating every single business bank in the nation to uncover all individual and corporate records in their care not secured by BVN.
The court, managed by Justice Nnamdi O. Dimgba, gave the between time arrange in Suit no: FHC/ABJ/CS/911/2017 to all cash store banks to uncover all ledgers that are not connected with a BVN, announce the record quantities of such acounts, the branch in which the records are domiciled and in addition the remarkable adjusts and publicize same in a broadly circled daily paper inside seven days while giving proprietors of the record 14 days to distinguish themselves, coming up short which the assets in such records would be relinquished to the Federal Government.
The court, in an ex parte movement, said it gave the request since running a ledger without a BVN is “contrary to Section 3 of the Money laundering Act 2011 and CBN guidelines.”
The legislature has been worried that its turn to uncover those covering up stolen subsidizes in the banks was being baffled by bank authorities conspiring with them by enabling them to run accounts without BVN.
As of late, the Acting Chairman of the Economic and Financial Crimes Commission, Ibrahim Magu, raised the caution that a few banks were ruining government authorities to work mystery accounts without BVN.
While conveying an address at a workshop composed by the Chartered Institute of Bankers of Nigeria in Lagos, on September 26, 2017, he said some bank authorities were in the propensity for “opening records for government authorities even after the presentation of the Treasury Single Account, in this manner permitting government assets to be occupied.”
As indicated by him, “There are several bank accounts that are not linked to BVN and are still active.”
So also, the CBN had a week ago, in a notice marked by Mr Dipo Fatokun, Director Banking and Payment System, guided all banks to appropriately catch clients’ BVN information and guarantee that a client’s names on the BVN database are the same in the greater part of his/her records, over all banks.
In the update entitled the ”Regulatory Framework for BVN and Watch-list Operations in Nigeria,’ the CBN said this became necessary to forestall fraudulent activities of bank customers.
The system expressed that “change of customer records shall be allowed as follows: Name change with supporting documents, subject to a maximum of twice a year; change of date of birth shall be allowed only once with supporting documents; minor correction due to errors supported with valid means of identification.”
As indicated by the CBN structure, a watch-recorded individual might not be permitted to go into new association with any bank.
The court additionally requested that the banks “should disclose any investments made with funds from these accounts without BVN in any products including fixed/term deposits and their liquidation and interest incurred, bank acceptances, commercial papers and other relevant information related to the transactions made on the accounts.”
The CBN, had in conjunction with the Bankers Committee, set out upon the organization of an incorporated BVN framework and propelled the undertaking in February 2014 as a major aspect of the general technique to guarantee viability of the Know Your Customer (KYC) standards, and the advancement of a protected, dependable and effective installments framework. The BVN gives a novel personality over the managing an account Industry to every client of Nigerian banks.