The Central Bank of Nigeria ( CBN ) has said it will hold commercial banks responsible for any fraud arising from failure to enlist individual customers into the Bank Verification Number ( BVN ) scheme.
The CBN , which stated this yesterday in its released framework for BVN operations and watch – list for the financial system , said it is part of efforts to develop and enhance the security of electronic payment system in the country .
In the report addressed to all banks and non – bank financial institutions , as well as payment system service providers, switches and mobile money operators , the apex bank reiterated that the framework is with immediate effect .
By the policy , banks and other BVN participants are to ensure that risks mitigation techniques are put in place to minimise operational , technical and fraud risks .
Besides , banks have been mandated to report frauds in the system , ranging from forgery , compromise , complicity , fraudulent duplicate enrolment and fraudulent infraction even without monetary value .
Others include confirmed successful fraud with monetary value , when a customer is watch – listed more than once and fraudulent individual that is at large .
Meanwhile , customers will now assent to disclaimer for banks that if fraudulent activity is associated with the operation of the account , the bank has the right to apply restrictions to the account and report appropriately to law enforcement agencies .
Also , in the case of complaints by customers against the banks’ services , the arising disputes shall be resolved by the affected banks or escalated to the CBN when they linger .
Customers will now be allowed to change names twice a year , subject to the provision of supporting documents , while change of birth date is once for all time, as well as minor correction due to errors , with supporting documents too .
Once a customer is placed on watch , the person can only be delisted by obtaining a formal document designed for such from the bank and passing through the processes required .
The development would require banks to invest heavily in their information technology platforms , as this would involve security of hardware , software encryption of messages transmitted through the BVN network .
The CBN said the objective of the framework is to clearly define the roles and responsibilities of stakeholders, operations of BVN ; usage and management , deter fraud incidences in the banking industry , among others .