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Bank Account without BVN to Attract 2m Fine- CBN

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Central Bank of Nigeria (CBN), in a bid to promote financial system stability, has declared that financial institutions and customers that violate the framework of the Bank Verification Number (BVN) would face sanctions.

Bank Account without BVN to Attract 2m Fine- CBN

Some of the penalties listed for financial institutions having a customer operating an account without BVN will be N2,000,000 per infraction/customer, 15 per cent of the total amount credited into the account during the period infraction exists and N20,000 penalty per infraction/customer per day after the infraction exists.

This was made clear in a circular issued by the CBN to all deposit money banks (DMBs), mobile money operators, super agents, and payment service providers, on the issuance of the revised regulatory framework for BVN operations and watch-list for the Nigeria banking industry.

This framework defines the operations of BVN as well as the establishment and operations of a watch-list for the Nigerian banking industry, to address the increasing incidence of frauds and to enhance public confidence in the banking industry.

The CBN noted that “the following infractions by participants shall attract appropriate penalties.”

According to the apex bank, this includes misuse of the BVN watch-listing process for victimization, improper linking of accounts or wallets (except Tier 1); and other infractions, as may be determined by the CBN.

The central bank said it would ensure all operated accounts or wallets, including the ones open through agents (except Tier 1), are linked with the signatories’ BVNs within 24 hours of NIBSS making BVN available.

The bank added that operators must enrol all mobile money wallets (except Tier 1) subscribers on the BVN database and link their wallets (except Tier 1) with their BVNs within 180 days of the issuance of this framework.

“Ensure that BVN details of all signatories, directors and beneficial owners are linked to their respective non-individual accounts/wallets (except Tier 1),” a part of the disclosure said.

The apex bank also stated that it is mandatory for non-resident non-Nigerian directors of corporate accounts to have a BVN.

Also, the failure to capture customers’ biometrics and biodata in line with the BVN Framework comes with N2,000,000 penalty.

As per infraction or customer, the failure to report customers’ BVN for watch-listing attracts N200,000 penalty per infraction or customer.

Furthermore, the failure to correctly report the BVN of a deceased customer will attract a N100,000 penalty per infraction or customer, while failure to follow due process in confirming and designating a customer as deceased will result in a N20,000 penalty per customer per day after the infraction exists.

 


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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