BREAKING NEWS, Business
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The Central Bank of Nigeria clarifies that providing bank verification number as part of the requirement for buying foreign exchange poses no risk but rather protects the customer and prevents fraudulent transactions
THE Central Bank of Nigeria, CBN, has said that the Bank Verification Numbers, BVN, is neither a payment instrument and does not attract any risk to a customer if it is disclosed during forex transaction as stipulated by the apex bank. The clarification came in the wake of the CBN
recent mandate to all banks and licensed Bureaux de Change, BDCs, operating in Nigeria to provide BVN, as part of the requirement for the sale of foreign exchange to their customers.
The CBN said: “It has, however, come to our notice that some customers are reluctant in disclosing their BVN to authorised dealers and buyers because of claims that there are attendant risks to the disclosure. It is therefore imperative for the Bank to make the following clarifications:
“The adoption of BVN as a condition for the purchase of FOREX is expected to reduce the incidence of multiple purchases, round tripping and illicit transfer of funds, facilitate enforcement of authorised limits of forex sales to end users, sanitise the retail segment of the market and engender policies that will facilitate better allocation of the forex, based on genuine demands.
“The BVN is neither a payment instrument nor an account number and therefore could not be used to access any account by unauthorised users. The banks, BDC operators and even regulators use the BVN to validate the identity of a customer using some biometric information such as finger prints and photograph obtained at the point of enrolment.
“The BVN provides the unique identity of each customer for the purpose of achieving effective “Know Your Customer”, KYC, principle and fraud prevention.”
For the avoidance of doubt, the provision of BVN by customers at the point of Forex purchase or for any legitimate banking transaction with any of the above named institutions does not attract any security risk. Rather it protects the customer against identify theft, a statement issued by Ibrahim Mu’azu, director, Corporate Communications, Central Bank of Nigeria, said.
Customers can easily get their BVN from the mobile phone number submitted during the enrolment by dialing *565*0, it said.
— November 6, 2015 @ 8:40 GMT
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