Friday, October 23, 2015

Nigerian Banks, BDCs Must Demand BVN From Nov 1 – CBN

Central Bank of Nigeria, CBN has on Wednesday announced that from November 1, 2015, prospective buyers of foreign currencies must show their Bank Verification Numbers,
BVN to banks and Bureau De Change operators before they would be allowed to buy them.

The disclosure was made known in a circular by the Director, Financial Policy and Regulation, CBN, Kevin Amogu on the bank’s website.The circular read in part, “In continuation of efforts to stabilise the forex market, stem the rampant cases of forex leakages and illicit money transfers out of the country, the use of Bank Verification Number for all forex transactions shall come into effect from November 1, 2015.
“All banks and licensed BDCs operating in Nigeria as well as the general public are, therefore, put on notice that with effect from November 1, 2015, all customers desiring to purchase forex through all available channels in Nigeria must provide their BVN, which shall be validated by the CBN authorised forex dealer through the Nigerian Interbank Settlement System platform before the transactions are consummated.”
“For the avoidance of doubt, the CBN shall from November 1, 2015, discontinue sale of forex to the BDCs that have not availed it the BVN of all its directors.
“Any authorised forex dealer that fails to provide the required information in its returns or provides a wrong BVN would be penalised and this may include the termination of the forex dealership authorisation.”
He said the development would allow the CBN to plug leakage of foreign exchange out of the country.

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