Regulatory Alerts2017-07-03 | BPS/DIR/GEN/CIR/04/005Exposure Draft on the Regulatory Framework for Bank Verification Number (BVN) Operations and Watch list for the Nigerian Financial System
The document outlines the policy framework for managing and utilizing the Bank Verification Number (BVN) Watch-List in Nigeria. Banks must enlist individuals involved in confirmed fraudulent activities into their watch-list system, which is managed by the Nigeria Inter-Bank Settlement System (NIBSS). The categories of fraud and associated sanctions are clearly defined. Sanctions include but are not limited to prohibiting account holders from utilizing electronic banking channels and non-personal transactions. A bank's failure to enlist confirmed fraudsters or placing an individual on the watch-list without proper justification may result in penalties. This policy ensures that banks operate effectively, fostering transparency and ensuring financial stability. Additionally, the policy outlines the processes for individuals wrongfully to be delisted from the BVN Watch-List. This includes receiving clearance certificates from the Committee of Chief Audit Executives and notifying the NIBSS in writing, signed by both the MD/CEO and the Chief Audit Executive.