CBN Introduces Stricter BVN Regulations, Sets Up Fraud Watchlist

The Central Bank of Nigeria (CBN) has revised its regulatory framework governing the Bank Verification Number (BVN) system, introducing tighter controls aimed at curbing fraudulent activities and strengthening identity management within the banking sector.

The changes were outlined in a circular titled “Addendum to the Revised Regulatory Framework for Bank Verification Number (BVN) Operations and Watch-List for the Nigerian Banking Industry 2021.” The document, issued by the apex bank and signed by the Director of the Payments System Policy Department, Musa I. Jimoh, was circulated to banks, other financial institutions, and payment service providers across the country.

The apex bank stated that the adjustments are designed to reinforce oversight of suspicious transactions and improve safeguards within the financial system.

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“In line with its mandate of promoting financial system stability, the CBN hereby issues the following amendments to the Revised Regulatory Framework for Bank Verification Number (BVN) Operations and Watch-List for the Nigerian Banking Industry 2021,” the circular stated.

As part of the new measures, financial institutions are required to establish and manage a temporary watchlist for BVNs associated with transactions suspected to be fraudulent.

“A BVN may remain on this temporary Watch-list for a maximum period of twenty-four (24) hours, during which the BVN owner shall be contacted to provide clarification regarding the identified transaction(s),” the circular said.

The bank noted that the provision is intended to enable lenders and other financial institutions to promptly flag unusual activities while allowing affected customers to explain or resolve the transactions before further action is taken.

The updated framework also revises the eligibility requirement for BVN registration, setting the minimum age for enrolment at 18 years.

According to the regulator, the adjustment is intended to strengthen identity verification procedures and ensure that BVN enrolment aligns with recognised legal age requirements.

In addition, the directive restricts customers to a single change of the phone number linked to their BVN record.

The measure, the bank explained, is aimed at limiting identity manipulation and preventing fraud often associated with repeated modifications to contact details tied to financial identities.

The circular further states that access to the BVN database will now be restricted to financial institutions duly licensed by the CBN.

However, the regulator added that it may authorise access to the database in special circumstances, provided such approvals comply with relevant laws and regulatory provisions.