The Nation Newspaper

Tag: BVN

  • ‘BVN will reduce identity theft, fraud’

    ‘BVN will reduce identity theft, fraud’

    The Bank Verification Number (BVN) will reduce fraud and identity theft in the financial sector, Managing Director of Addosser Microfinance Bank, Ayodeji Sobulo, has said.

    According to him, “duplication of identities” is a problem faced by microfinance banks.

    “In this regard, the government has to speed up efforts in the collation of personal data and consecrate our data bank through the BVN, identity cards and Know Your Customers (KYC),” he said.

    He urged government agencies to be more flexibile in their regulation of small and medium scale companies to help them survive.

    He said the Addosser, with 13 branches accross Lagos, was established to bridge the gulf between the poor and the financial institution.

    “Our strength is in the fact that our solutions are tailor-made to suit each customer as our products compete with the best in the country.

    “We are partnering the state government on vocational capacity building. We are also working with Avis Car International for youths to have cars of their own instead of driving for others all their life.

    “Our interest rates are  very flexible, competitive and tailor-made to suit each client; we are not a rigid bank. We look at a lot of parameters about your business before we set our rates,” he said.

     

  • BVN: Will CBN stick to October 31 deadline?

    BVN: Will CBN stick to October 31 deadline?

    If the Central Bank of Nigeria (CBN) sticks to its October 31 deadline, over 32 million customers who have yet to obtain their Bank Verification Number (BVN) may have their accounts frozen. COLLINS NWEZE writes.

    WHEN the Central Bank of Nigeria (CBN) and Bankers’ Committee came up with the Bank Verification Number (BVN) for two reasons: to tackle rising fraud cases and to protect transactions. After all, banking thrives on trust and security of customers’ funds.

    But with 17 days to go, only 20 million customers have obtained their BVN, leaving over 32 million others at the risk of being excluded from the system if the CBN sticks to the October 31 deadline. Initially, the deadline was June 30.

    According to CBN Director, Banking Supervision Mrs. Tokunbo Martins, customers who fail to meet the deadline would lose their accounts, adding that there is no going back on the deadline.

    “There will be no extension of the October 31 deadline. All efforts have been made by the Bankers’ Committee, the CBN and Nigeria Interbank Settlement System for customers to obtain their BVN. The customers, who fail to meet the deadline will not be able to operate their accounts until they comply,” she said.

    The bank chief, who spoke on behalf of the committee members, said Nigerians in Diaspora could enrol at various embassies in their countries of abode or get enrolled by the consultant involved in the contract at a fee. He said non-compliant customers still had up till month end to get their BVN or face the consequences.

    She said the BVN registration was a directive from the CBN to Deposit Money Banks to register their customers’ fingerprints biometrically in furtherance of the Know Your Customer (KYC) policy.

    The BVN was introduced in collaboration with the Bankers’ Committee on February 14, last year to ensure unique identity for all bank customers and other users of financial services in the country by the use of the customers’ biometrics as means of identification. Initially, it was estimated that all customers would, within a period of 18 months, complete enrolment in the new system of customer identification. The enrollment for the scheme can be done in banks across the country.

    The Nigeria Interbank Settlement System (NIBSS), which guides the modalities of the project, is working on ensuring the success of the exercise by collaborating with telecoms firms to create a platform through which bank customers can confirm their registration status.

    Already, NIBSS has collaborated with one of the country’s telecoms service providers, Etisalat to roll out the BVN Query Service.

    Speaking on the service, the Managing Director of NIBSS, Ade Shonubi, said the initiative was in response to growing public demand for confirmation of BVN status by those, who have enrolled on the platform. He added that the BVN Query Service will boost such efforts like KYC for banks.

    Chief Marketing Officer, Etisalat Nigeria, Francesco Angelone, said the partnership with NIBSS on USSD BVN Notification Service was in line with the telco’s commitment to continue to create value for the consumers across all sectors, including the banking and telecoms industries.

    “We are happy to be the first to offer this product among the operators because we believe that innovation is the way the telecoms industry must lead,” Angelone said.

    He said Estisalat believes that going in this direction of offering value to the banking public is another way it can show the telecoms industry the way to go. “The integration with the banking industry is a pillar for development. Etisalat subscribers can check their BVN registration status and number by dialing a dedicated code for an instant response at a cost of N10 per Query,” he said. The Query Service is based on instant request – instant response and aims at providing utility for those who have enrolled on the BVN platform of the CBN.

    While the deadline looms, stakeholders, including banks, urged their customers to  register. The Consumer Right Awareness Advancement and Advocacy (CRAAAI) also urged Nigerians to register for their BVN.

    CRAAAI Chairman, Mr. Moses Igbrude, who spoke at a stakeholders’ forum on identity management in the economy, said identity management is a broad administrative area that deals with identifying individuals in a particular system.

    He listed the system to include a country, a network, or an enterprise and controlling their access to resources within that system by associating, user rights and restrictions with the established identity.

    He added that the role of technology in modernising the sector has witnessed a paradigm shift from the traditional methods of banking to digital channels which involve enormous levels of electronic data capture (EDC) of customer’s information. “Everybody needs security; if people are identified before they commit any crime, the person will be identified easily,’’ he said.

    Sterling Bank Plc has deployed an innovative solution to enable customers who had previously enrolled for their BVN with other banks to upload same on its platform via their mobile phones.

    With this development, customers are now able to comply with the regulatory requirement on BVN and save themselves the stress of having to come to the banking hall.

    In a statement on how the development affects customers, the bank said its plan is to make the exercise seamless, easy and consistent with the move towards self-service that has become the order of the day. “Ultimately, it also enables the bank comply with the CBN’s position within reasonable time,” it said.

    The lender said it would continue to improve customers’ experience at every touch point , which is in line with its brand promise. It disclosed that all BVN cards produced by NIBSS for its customers have all been distributed to all the customers who have registered.

    Many of the bank customers, who spoke with The Nation, said they wanted the deadline extended by at least six months. Moses Abiola, said bank customers should be allowed to register. He said customers should not be punished because there are many challenges that made it difficult for them to register. “I visited my bank several times to register but they complained of poor network. I know that other customers had similar experience,” he said.

    Michael Obi, a business woman based in Lagos, also said there were no nearby registration centres for her to register. She said bank should increase the number of registration centre to capture more customers. “I think the place where people can register are very few. Maybe, if  there more registration centre, more people will register,” he said.

    Another customer, James Chukwu, said he filed to register because the process was too tedious. “What of all the data I provided in the course of registration. Why can’t the bank rely on those detail? he asked. He said the bank should make things easier for their customers by asking only relevant documents that have not been supplied earlier.

    CBN Governor Godwin Emefiele said the biometric technology involves the recording of a person’s unique physical traits, such as fingerprints and facial features. This record, he said, could then be used to identify the person later.

    He said the BVN became exigent, following the increasing incidents of compromise on conventional security systems, such as password and Personal Identification Number (PIN) of bank customers which has led to loss of funds. There is therefore, a high demand for greater security for access to sensitive or personal information in the banking system.

    Also, once a person’s biometrics have been  captured, the person is given a BVN, which protects him.

    He explained that fraud is reduced because no two persons have the same biometric information. “Banks will, therefore, be able to check the features of a person doing a transaction against the record which the bank has captured thereby correctly identifying the owner of an account,” he said.

    A statement from the Bankers’ Committee insists that all bank customers in Nigeria are required to register or enroll for a BVN by June. However, to enrol, they must visit a branch of their bank, but the BVN given to a person by one lender will apply to that same person for any bank in the country.

    The committee explained that since the BVN captures physical features, it is also very helpful for people who cannot read and write, thereby making sure that everyone is included in the financial system.

    “It is expected to help the banking system identify customers who have been blacklisted by one bank and who move to other banks. There is also need to inspire confidence in the BVN registration process and use of information collected as well as helps public to distinguish between genuine BVN communication and requirements and the activities of fraudsters,” it said.

     

    Why BVN?

    Biometric security identification is a secure method of identification that eliminates issues with identity theft and fraud. Since it is unique to an individual, biometrics provides a strong link between the individual and the claimed identity.

    “The process of enrolment is simple. Customers are to visit any branch of their bank; fill out and submit the BVN enrolment form; biometric information such as fingerprints and facial imagery  is recorded; acknowledgment slip with transaction Identity is issued; BVN is created and customer is alerted to arrange for pick-up,” it said.

    The committee said the project protect customer bank accounts from authorised access, as biometric information is not easily manipulated. It strengthens the financial system by reducing the risk of unauthorised access to customer bank accounts. It also increases the efficiency of the banking industry as it reduces incidence of fraudulent/duplicate bank accounts, and easily highlights blacklisted customers.

    “Besides, full integration of BVN provides standardised efficiency of banking operation. This means that all banking operations will be verified using the same method, reducing cases of human error or inconsistency. Implementation of BVN means transaction authentication without the use of cards, but instead using only biometrics and a Personal Identification Number (PIN),” it added.

     

    Dermalog/Charms Plc

    For the CBN, the exercise is a continuation of the $50 million biometrics project it instituted with the Bankers’ Committee, Dermalog and Charms Plc.

    However, not until May, last year, did banks begin issuing BVNs to their customers mainly at their headquarters. Managing Director, NIBSS, Mr. Ade Shonubi, said to ensure an efficient implementation, a phased roll-out approach was adopted beginning in Lagos.

    The NIBSS provides the infrastructure for automated processing, settlement of payments and fund transfer instructions between banks, discount houses and card companies in Nigeria. The firm is owned by all licensed banks, and the CBN. Discount Houses operating in Nigeria also hold substantial shares in the firm.

    Biometric Project Manager, NIBSS, Oluseyi Adenmosun, said BVN gives a unique identity that can be verified across the banking industry making it easier for customers’ bank accounts to be protected from unauthorised access. It is expected to address issues of identity theft, and reduce exposure to fraud in the banking sector.

    The manager added that the purpose of the project is to use the biometric information to authenticate customer’s identity during transactions.

     

  • Biometric-fatigue?

    Biometric-fatigue?

    •BVN should be open-ended, but it is imperative that every account holder is captured by the present window

    With less than 40 percent registered barely a month to go, it seems all is far from well with the apex bank-ordered current Biometric Verification Number (BVN) registration exercise.

    Giving an update last week, the Central Bank of Nigeria (CBN) Director, Corporate Communications, Mu’azu Ibrahim, disclosed that only 20 million out of the 52 million active bank accounts in the country have registered. That is a whopping 32 million yet to acquire the BVN as at the end of September. For the 20 million already enrolled, the CBN spokesman further observed that 14 million are linked to the BVN as at September.

    For  an exercise launched with so much fanfare on February 14, 2014, and which was initially planned to end by June 30 this year, it must be disappointing that the shift in the deadline, by four months, did little to change the situation. We wonder if this is not by itself a measure of how biometric-weary Nigerians have become.

    Today, all manners of agencies – public and private – are known to mount the siege on the citizens for the same biometric information, while hyping the same grand claims about delivering fool-proof identification systems. Yet, what we have seen over the years are miserably poor outcomes, after expending enormous resources – in cash and productive man-hours.

    Given the current level of compliance, it seems highly unlikely that the October 31 deadline will be met. And if experience is anything to go by, Nigerians can expect to see chaos and bedlam in the coming weeks, as customers besiege the banking halls to beat the deadline.  A further extension of the deadline would therefore, in the circumstance, seem absolutely imperative.

    The latest development obviously throws up a number of salient issues. First, has the apex bank – as indeed the Bankers Committee as a whole – done enough to create the awareness required for its success?  The second point is whether the Bankers Committee couldn’t have come with a better, less disruptive way to get the job done; and third, whether the idea of the deadline, and the threat of sanctions for failure, make any sense at all.

    On the first, we agree that there is a lot to be said of Nigerians’ penchant to dither on important issues such as the BVN registration. It is however the CBN’s primary responsibility to mount a matching public enlightenment response as well as a pragmatic programme to secure the needed buy-in for the exercise.

    Obviously, if the power to draw up deadlines or issue threats of sanctions (as against creating the right environment for its adoption) is all that is required to get the job done, the exercise would have long been concluded.

    Rather than seek to enforce impossible deadlines, therefore, the CBN, as indeed the Bankers Committee, would do well to focus on creating the right atmosphere to get more customers to sign up for the programme.

    On the second issue, we also think the CBN could have done better to develop a simpler, less cumbersome and less time-consuming process, or better still, a single platform to integrate the banks. A single platform would obviously save time and eliminate the additional burden imposed on multiple account owners.

    That should neither prove an impossible task given the current level of application of Information Technology in the sector, nor be considered too late given the foregoing circumstances.

    Finally, we see the idea of stopping the operations of accounts in the event of the failure to meet the registration deadline as stemming from the failure of imagination. Would the apex bank rather shut the offenders out as against finding creative means to sign them on to the BVN? Would that mean that only those signed on would enjoy banking services?

    The answers to these questions would have a great impact on the economy, since banking is at the core of every economic activity.  That is why the CBN must come out with a flexible BVN aimed at maximum compliance without a penalty regime that shrinks the banking market.

  • CBN laments poor enrolment for BVN

    The Central Bank of Nigeria (CBN) has raised the alarm that less than half of active bank accounts in the Nigerian banking system have been enrolled in the Bank Verification Number (BVN) exercise.

    A statement from the CBN last night in Abuja expressed concerns that bank customers are not taking advantage of “the extension to complete their BVN registration and also ensure that their various bank accounts have been linked to the BVN.”

    The CBN statement noted that “the emerging statistical trend of the BVN registration exercise showed for about 52 million active bank accounts in various banks,  total  enrolment stood at about 20million, out of which about 14million accounts have been  found linked to the BVN as at September, 2015.”

    Another interesting trend the CBN said “also showed that after the initial rush between the end of June and July 2015,  there has been a steady decline in new BVN enrolment figures for August and September, 2015. The emerging scenario therefore, strongly suggests that many bank account holders have continued to show apathy instead of taking advantage of the extension period.”

    Given this development, the CBN was worried that “there is the apprehension that  the commotion and melee experienced at various banking halls in the month of June 2015 would be repeated if customers do not use the remaining one month to ensure that they complete their BVN registration, and also get their various accounts linked to the BVN.”

    Inspite of this apprehension, the CBN made it clear that there would not be further extension after October 31, 2015 deadline.

    This means that customers without the BVN-linked accounts may risk being restricted from normal operations of their accounts or free access to their bank account balances.

    The CBN said: “BVN is now a mandatory requirement for opening new bank accounts. As a result, those affected by the restrictions are customers with bank accounts which were opened prior to the commencement of the BVN scheme.”

    The Central Bank of Nigeria (CBN), in collaboration with the Bankers’Committee, introduced the Bank Verification Number (BVN) on February 14, 2014.

    This initiative of the Bankers’ Committee is aimed at ensuring unique identity for all bank customers and other users of financial services in the country by the use of the customers’ biometrics as means of identification.

  • BVN: Non-compliant customers face sanction

    depositors who fail to meet the October 31 deadline for Bank Verification Number (BVN) registration will be barred from enjoying banking services until they comply, The Nation has learnt.

    No fewer than 20 million customers have so far been registered, according to the Nigeria Inter Bank Settlement System Plc (NIBSS).

    In its quest to ensure the success of the exercise, NIBSS partnered with telecoms firms to create a platform through which bank customers can confirm their registration status.

    Already, NIBSS is partnering telecoms service provider, Etisalat, to roll out the BVN Query Service.

    The service, which was unveiled at the NIBSS headquarters recently, is designed to help the public get information on their BVN via their mobile phones.

    The initiative is coming on the heels of the extended deadline for the BVN registration which ends next month.

    The registration was a directive from the Central Bank of Nigeria (CBN) to all Deposit Money Banks (commercial banks) to register their customers biometrically in furtherance of the Know Your Customer (KYC) policy.

    NIBSS Managing Director,Ade Shonubi, said the initiative was in response to growing public demand for confirmation of BVN status by those, who have enrolled on the platform. He added that the BVN Query Service would boost such efforts like KYC for banks.

    Also, Chief Marketing Officer, Etisalat Nigeria, Francesco Angelone, said the partnership with NIBSS on USSD BVN Notification Service was in line with the telco’s commitment to continue to create value for the consumers across all sectors, including the banking and telecoms industries.

    “We are happy to be the first to offer this product among the operators because we believe that innovation is the way the telecoms industry must lead,” Angelone said.

    “The integration with the banking industry is a pillar for development. Etisalat subscribers can check their BVN registration status and number by dialing a dedicated code for an instant response at a cost of N10 per Query,” he said.

    The Query Service is based on instant request- instant response and aims at providing utility for those who have enrolled on the BVN platform of the CBN.

     

  • NIBSS battles Chinese, Indian Customs over BVN tools at ports

    NIBSS battles Chinese, Indian Customs over BVN tools at ports

    •Partners telcos on BVN confirmation alerts

    The Nigeria Interbank Settlement System (NIBSS) said its plans to extend the Bank Verification Number (BVN) project to China and India is hampered by delays in clearing project kits from their ports.

    Speaking yesterday during the announcement of partnership between NIBSS and some telecom operators in Lagos, its Managing Director, Ade Shonubi, said some of the devices needed to commence Diaspora BVN registration in both countries are stuck in their ports.

    He said: “We have been unable to get the devices out of the ports. The Customs in those countries are not co-operating with us”.

    Shonubi said NIBSS is working in partnership with telcos to ensure that every one that has been enrolled on the BVN network gets his number through his phone by dialing specified code.

    He said the USSD-BVN Notification Service, will assist the banking sector achieve seamless Know-Your -Customer (KYC) documentation process, and will boost customers’ access to credit.

    The NIBSS boss also said the BVN will enable banks blacklist fraudulent customers and ensure they do not return back to the system.

    Chief Marketing Officer, Etisalat, Francesco Anjelone, said the firm is fully in support of the USSD-BVN Notification Service, describing it as an innovation. He said Etisalat keyed into the project because there will be a creation of value for both industries. “The collaboration will strengthen the BVN project,” he said.

    Senior Manager, Airtel, Adefolake Ogunbayo, said Airtel customers will start checking for their BVN from Wednesday next week. She described the partnership with NIBSS as a perpetual relationship that will lead to other services.

    Aside China and India, the NIBSS also is working on extending the BVN project to Washington DC, Johannesburg, and Atlanta. Other cities participating in the scheme are Guangzhou, London, Leicester, Houston and New York City.

    The OIS Services, handling the Diaspora project, is expected to capture necessary data for online transmission to NIBSS, which would thereafter generate the BVN and communicate same to the customer. The Diaspora customer are expected to forward their BVN to their local banks for linkage with their accounts.

    The CBN has also reiterated its support for the BVN project. The regulator said the new guidelines on the BVN enrolment has authorised bank customers in Diaspora to present themselves for enrolment by using foreign based Nigerian banks.

    “The first option is the customers of Nigerian banks to present themselves to the offshore branches or subsidiaries of any Nigerian banks for the BVN enrollment. The deployment of scanners and other devices to these locations have started in earnest,” it said.

  • BVN registration: Senate urges CBN, others to sensitise Nigerians

    The Senate yesterday urged the Central Bank of Nigeria (CBN) and commercial banks to conduct intensive awareness  campaign  on the Bank Verification Number (BVN).

    The resolution followed a motion by Senate Deputy Minority Whip, Senator  Biodun Olujimi entitled “Danger posed to rural bank customers by the Bank Verification exercise.”

    Mrs Olujimi said: “We appreciate the fact that the Bank Verification Number will help the banking system to track transactions across banks in Nigeria.

    “ There is however the concern that the people in the rural areas are not carried along due to the inability to access print and electronic media.’’

    Senate President Bukola Saraki described the motion as timely in view of the October 31 deadline.

    He said while the exercise was a laudable, the CBN and other stakeholders should ensure that no Nigerian irrespective of location is negatively affected.

    Saraki said: “It is a laudable project but it should be inclusive and there should be more awareness particularly in the rural areas. They should go the extra mile to ensure their customers participate in the exercise.“

    Senator Philip  Gyunka  (Nassarawa North)  said the CBN ought to make provisions to accommodate rural dwellers.

    He said farmers in his community had complained that their finger prints could not be captured in the exercise.

    Senator Enyinaya Abaribe (Abia South) called for a unification of data from agencies saddled with the responsibility of collating data.

    Abaribe said: “I support this motion because it is difficult to  register to vote,  go through the rigour of another biometric  data capturing for  drivers licence and also  dragged into registering for national identity card.

    “We are carrying all manner of identifications  that are not linked in any way and we are concerned.

    “This has to be part of what we will discuss with the CBN governor when he comes.

    “We will discuss how to make life pleasurable for an average Nigerian,’’ he said.

    Senator Shehu  Sani(Kaduna  Central)  expressed concern over the poor state of banking in the rural areas.

    Sani said attempts to promote banking in the villages had not been successful and something urgent should be done to carry them along.

     

  • NIBSS, OIS Services extend BVN to US, UK, others

    NIBSS, OIS Services extend BVN to US, UK, others

    The Nigeria Interbank Settlement System (NIBSS) and an international technology firm, OIS Services, have  extended the Bank Verification Number (BVN) registration to account holders in the United States of America (USA), United Kingdom (UK), China and India.

    This was disclosed at the weekend by the NIBSS Managing Director/CEO, Ade Shonubi during a meeting with the reporters at the weekend, in Lagos.

    He said that 18 million bank accounts have been enrolled since the project began  over a year ago and that it is the primary responsibility of all stakeholders to ensure that bank customers are identified and their accounts fully secured.

    Shonubi explained that the BVN enables each individual to have a single identification within the financial system and gives each customer maximum protection and security of transactions. “In many advanced countries, biometric technologies have been used to analyse human characteristics as an enhanced form of authentication for real-time security processes. Biometrics refers to identifying an individual based on physiological or behavioral attributes – fingerprint, signature among others. The customers unique BVN is accepted as a means of identification across all banks,” he said.

    He said that the handler of the offshore BVN Registration, OIS Services, is experienced on the job, given that it had conducted similar exercises in other countries before.

    Shonubi said the firm was engaged because in many countries, the law prevents data of their nationals captured abroad and that OIS Services is already conducting the registration exercise at the Nigerian embassies in those countries.

    “We looked at the Nigerian embassies and we were confident that they can help implement the project. We also looked at the issue of cost. We made applications to some countries, and we are waiting for approvals. We need people who are already on ground and OIS was duly qualified,” he said.

    He said that NIBSS data will remain local, for its own protection and that a 50 Pounds Sterling fee is to be paid by bank customers registering abroad.

    He said the collaboration between the Central Bank of Nigeria (CBN) and banks have helped to get more customers enrolled within the West Africa sub region, adding that Ecobank Plc and Diamond Bank Plc are all involved in the West African registration.

    Head, BVN Project in NIBSS, Seyi Ademonsu said that to achieve a seamless registration process, OIS Services is now conducting appointment booking for bank customers in the UK, who are required to enroll with after providing their identity cards.

    He said that BVN gives a unique identity that can be verified across the banking industry making it easier for customers’ bank accounts to be protected from unauthorised access. It is expected to address issues of identity theft, and reduce exposure to fraud in the banking sector.

    Adenmosun said the BVN would also provide a uniform industrially accepted unique identity for customers and authenticate transactions without the use of cards using only biometric features and PIN.

    Collaborating Bankers’ Committee position, Adenmosun said “the enrolment process is simple and easy”. He explained those banks customers are expected to walk into any branch of you’re their bank, fill and submit the BVN Enrolment form and also do data capturing (such as fingerprint, facial image among others.

    He said an acknowledgment slip with the transaction identity is issued to the customer. Within 24 hours, the system confirms the application, the BVN is generated, and SMS is sent to the customer for pickup.

    He said a customer can only enroll once, while his BVN will be linked to all his bank accounts across Nigeria banks. “The BVN solution is to ensure accountability, protect bank customers’ account from unauthorised access, reduce exposure to fraud, check identity theft, enhance credit advancement to Bank customers, and also encourage financial inclusion,” he said.

    He said the initiative addresses issues of identity theft and ensures that your bank accounts is protected from unauthorised access, thus reducing your exposure to fraud. It will also promote a safe and sound financial system in the country, especially as it will keep records of suspected fraudulent individuals in the banking system.

    “It will make life and banking operations easy for bank customers as BVN is accepted as a means of identification across all banks in Nigeria. This will improve speed of service and reduce queues in banking halls.

    At the point of enrolment, individuals shall be required to submit an acceptable means of identification, and update their information at the bank branch physically. Customers of banks will be required to enroll within a fixed period after which they shall no longer be able to operate their bank accounts,” he said.

  • CBN mandates BDCs to provide customers’ BVN

    CBN mandates BDCs to provide customers’ BVN

    The Central Bank of Nigeria (CBN) has directed Bureau De Change operators (BDCs) to ensure that their customers obtain their Bank Verification Numbers (BVN).

    The direcive which takes effect from August 1, 2015, is to ensure greater transparency in  transactions of licensed BDCs

    In a circular released yesterday, the 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 Departmeny, CBN, Kevin Amugo, noted that “in the case of corporate customers, the BVN of a Director or an Authorized 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.”

    Kevin Amugo further threatened a fine of One million Naira (N1,000,000) as penalty for first offenders while subsequent violation may lead to revocation of license.

    According to 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 penalized. 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.”

    According to the CBN, “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”.

  • CeBIH advocates prompt BVN enrolment by customers

    CeBIH advocates prompt BVN enrolment by customers

    The Committee of E-Banking Industry Heads (CeBIH) has called on bank customers to take advantage of the deadline extension and promptly enroll for the Biometric Verification Number (BVN) project.

    CeBIH Chairman, Tunde Kuponiyi disclosed this following the Central Bank of Nigeria (CBN) extension of the deadline for enrolment for the BVN.

    The apex bank had on June 30 announced a four-month extension till October 31 for bank customers to enroll for the BVN. “We are calling on customers to visit their banks and promptly enroll for the BVN”, he advised.

    Kuponiyi noted that the purpose of the extension is to allow customers enough time to enroll irrespective of where they are based. “The extension presents ample opportunity for bank customers to do their enrolment without the challenge of spending hours on queues  as experienced few days to the end of the initial deadline,” he said.

    “The four months extension seems a long period, but customers should not delay or postpone their enrolment – it is better to do it now. They should not wait a few days to October 31 to avoid last minute registration rush and avoid spending hours in banking halls. They should also remember that they can enroll for their BVN from any branch of their bank, hence there is no need to wait till when they visit the branch where their accounts are domiciled,” he said.

    Listing the benefits of the initiative, Kuponiyi noted that the BVN affords customers the opportunity to register their biometric data against their bank accounts to protect their funds against fraudulent and unauthorised access.

    “The BVN protects customers’ bank accounts from unauthorised access, as biometric information is not easily manipulated. It also increases the efficiency of the banking industry as it reduces incidence of fraudulent/duplicate bank accounts, and easily highlights blacklisted customers.

    Furthermore, full integration of BVN provides standardised efficiency of banking operation. This means that all banking operations will be verified using the same method, reducing cases of human error or inconsistency.  In addition to these, the implementation of BVN means transaction authentication without the use of cards, but instead using only biometrics and a PIN”, he said.

    Established July 2009, CeBIH comprises all Heads of e-business/e-channels and cards services of all the 23 banks in Nigeria. The primary objective of the committee is to promote electronic banking services in line with global best practices and serve as a forum for sharing ideas and experiences by the E-banking industry Heads.