Recently one of the major concern of travelers and authorized Bureau De Change operator who wants to access Foreign Exchange(FX) from Travelex and other newly registered International Money Transfer Operators (IMTOs) is the compulsory provision of Biometric Verification Number before FX could be sold to them.
The Apex bank in a recent press release, explained the rationale behind the use of BVN for Foreign Exchange transactions.
“It has however come to our notice that some customers are reluctant in disclosing their BVN to authorized dealers and buyers because of claims that there are attendant risk to the disclosure” The press release from the office of the Director Of Corporate Communication of the CBN said in part.
The press release explained that the adoption BVN for Foreign Exchange transactions is expected to do the following:
1. Reduce the incident of multiple purchase of FX.
2. Reduce the incident of round-tripping and illicit transfer of fund.
3. Facilitate the enforcement of authorized limit of FX sales to end users.
4. Facilitate better allocation of FX base on genuine demands.
5. And sanitize the retail segment of the FX market.
The BVN is neither a payment instrument nor an account number and cannot be used to access any account. The BVN is used to to validate the identity of customers in line with the KYC principles and fraud prevention mechanism by Banks, BDC operators and the Regulator and can only be used to protect the customer against identity theft.
Customers of banks can easily verify their BVN on the mobile phone number they submitted during BVN enrollment by dialing *565*0#.