In the effort to address the absence of a unique identifier in the banking industry that has been a major inhibiting factor to the effectiveness of the Know Your Customer (KYC) principle, the CBN in collaboration with the bankers committee launched the Bank Verification Number (BVN) project in February 2014. Part of the expectation of the BVN is to reduce the incident of fraud and money laundering as well to enhance financial inclusion.
In other to avoid broken identity link in the banking sector and the need to capture customers of OFI that may be located in rural areas and may not have registered for BVN, the CBN has decided to introduce the BVN enrollment to customers of OFI after its encouraging success with the Deposit Money Banks (DMB).
The BVN registration for customers of OFI is expected to among other things support the achievement of zero default credit target set for Participating Financial Institutions (PFIs) in the Micro Small and Medium Enterprise Development Fund (MSMEDF) and also open credit opportunities for million of people without a standard means of identification.
SEE: Explaining The N220Billion Micro Small and Medium Enterprise (MSME) Development Fund.
Therefore all OFIs are required to
1. Enroll their customers on or before July 31st 2017
2. Conspicuously display notices sensitizing their customers on BVN in their banking halls
3. Ensure all new customers have BVN and
4. Forward to CBN schedule of all customers account with BVN on August 7th, 2017
The Apex bank further states that effectively from August 1st 2017 all OFIs customers without BVN will not be allowed to make withdrawals from their accounts.