The Central Bank of Nigeria (CBN) has released an amended regulatory framework for Bank Verification Number (BVN) operations and watch-lists for Nigerian financial system.
By the latest monetary policy directive, the regulatory banking institution provides that only a valid court order can make any bank or financial agency to disclose to a third party a customer’s BVN.
In a circular posted on its website yesterday and addressed to all banks, switches, mobile money operators, payment solution providers, microfinance banks and others, the apex bank stressed that any request for a customer’s BVN information by a third party must be accompanied with a court order.
The circular, which was signed by the CBN’s Director, Banking and Payments System Department, Dipo Fatokun, titled ‘Amendment to the Regulatory Framework for BVN Operations and Watch-list for the Nigerian Banking Industry,’ takes immediate effect.
The circular amended the provisions of Section 1.6 of the ‘Framework, Eligibility for Access to the BVN’ which states that ‘the following entities may have access to BVN information, subject to the approval of the CBN’ to read ‘the following entities may have access to BVN information, after providing a valid Court Order, subject to the approval of the CBN’.
“Consequently, the CBN by this circular hereby informs all stakeholders that the provision of a valid court order is one of the pre-requisites for the release of BVN information to applicants”, the circular added.
