CBN Directs Commercial Banks To “PND” Bank Accounts, Wallets Without BVN/NIN

THE Central Bank of Nigeria has directed all money deposit banks to “Post No Debit” on all bank accounts without BVN and NIN effective April 2024.

“Post No Debit” is a term used to describe a restriction imposed by banks on specific accounts, preventing customers from making withdrawals, transfers, or any other debits from their accounts.

This measure effectively freezes the funds in the account, rendering it inaccessible for the duration of the restriction.

The bank said the directive was part of efforts to promote financial system stability and strengthen the Know Your Customer procedures in all financial institutions.

The directive is contained in a circular issued by the apex bank and sent to all deposit money banks. The circular was jointly signed by Chiblzo A. Efori, Director, Payments System Management Department and Haruna B., Mustafa, Director, Financial Policy and Regulation Department.

The Central Bank also stated that all the BVN or NIN attached to and/or associated with all accounts/wallets must be electronically revalidated by 31 January 2024.

The circular further read, “Effective immediately, no new Tier1 accounts and wallets should be opened without BVN or NIN,

“For all existing Tier1 accounts/wallets without BVN or NIN: i. Effective immediately, any unfunded account/wallet shall be placed on “Post No Debit or credit until the new process is satisfied.

“Effective April 1, 2024, all funded accounts or wallets shall be placed on “Post No Debit or Credit, and no further transactions permitted.

“The BVN or NIN attached to and/or associated with all accounts/wallets must be electronically revalidated by January 31, 2024.”

Continuing, CBN further directed all Executive Compliance Officers, Chief Compliance Officers, or Heads of the Compliance Functions to acquaint themselves with the attached guidance notes to ensure full and uniform compliance.

“To ensure uniform and full compliance, the Executive Compliance Officers, Chief Compliance Officers, or Heads of the Compliance Functions are advised to acquaint themselves with the attached Guidance Notes which becomes applicable to ALL institutions regulated by the CBN.

“Also, a comprehensive BVN and NIN audit shall be conducted shortly and where breaches are identified, appropriate sanctions shall be applied.

“Finally, all financial institutions regulated by CBN are required to apply strict compliance on restrictions on Tier1 accounts/wallets as they relate to limits on transaction values and cumulative balances,” the circular concluded.

Find the attachment below:

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