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CBN mandates verification numbers for new DMB loans

By The Citizen
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The Central Bank of Nigeria (CBN) has said all new loans from Deposit Money Banks (DMB) must have the Bank Verification Number as a condition precedent to drawdown, with effect from November 3, 2014.

The CBN in a statement on its website on Tuesday said that all credit customers must have BVN by December 31, 2014.

'All DMBs are required to fully integrated their core banking system, latest by 31 October 2014, to ease the enrollment process,' the bank said, adding that it would monitor compliance.

The CBN in collaboration with the Bankers Committee had in February this year launched the BVN project.

As part of the overall strategy of ensuring the effectiveness of Know Your Customer principles, the BVN gives each bank customer a unique identity across the Nigerian banking industry, according to the statement.

'The CBN has observed that deposit money banks are making steady progress towards the enrollment of their customers. However the attention of CBN has been drawn on the need to clarify grey areas in the process of enrollment of the customers on BVN,' according to the statement signed by the Director, Banking and Payments System Compliance, Mr. Dipo Fatokun.

The central bank however said it had therefore become necessary for it to issue clarifications for the stakeholders to note and implement.

'Where an existing customer wishes to register the BVN with his or her bank, capturing his signature and photo identification documents may not be necessary, as the bank is expected to have those records during the account opening.

According to CBN, where an existing customer wishes to do a change of name after his or her enrollment on the BVN, due diligence should be exercised and appropriate legal documents obtained, before the change is effected.

'In order to fast track the enrollment process, DMBs are expected to give more attention to the enrollment of their customers,' it said, adding that 'All DMBs are required to enroll at least 40 per cent of their customers on or before 31 December 2014, and 70 per cent on or before 30 March 2015. - Punch.