CBN Mandates Banks to Monitor BVNs Linked to Suspected Fraud from May 2026
The Central Bank of Nigeria (CBN) has issued a new directive requiring banks and financial institutions to closely monitor Bank Verification Numbers (BVNs) associated with suspected fraudulent activities. This rule, set to take effect from May 1, 2026, is part of the apex bank's broader strategy to enhance financial system security and combat the increasing incidents of electronic fraud within Nigeria's banking sector.
Temporary Watchlist for Flagged BVNs
Under the directive, financial institutions must establish and maintain a temporary watchlist for BVNs linked to suspicious transactions reported in the banking system. According to a circular titled "Addendum to the Revised Regulatory Framework for BVN Operations and Watchlist for the Nigerian Banking Industry 2021," signed by Musa Jimoh, Director of the Payments System Policy Department, any BVN implicated in a suspected fraudulent transaction must be immediately placed on this watchlist.
The watchlist is designed to allow banks to quickly verify suspicious activities and prevent potential losses, with flagged BVNs remaining on the list for a maximum of 24 hours. During this period, the financial institution that reported the transaction must contact the BVN owner for clarification, ensuring that genuine customers are not unfairly penalized while enabling swift investigations.
New Restrictions on Phone Number Changes and BVN Enrollment
In addition to the watchlist, the CBN has introduced new restrictions to bolster security. Customers will only be allowed to change the phone number linked to their BVN once, a measure aimed at preventing fraudsters from repeatedly altering contact details to evade detection. Banks have been instructed to enforce this rule strictly upon implementation.
Furthermore, the directive clarifies that BVN enrollment is restricted to individuals aged 18 and above, ensuring that only adults with valid identification and financial accountability can obtain a BVN. This age requirement is intended to enhance the integrity of the banking system.
Access to BVN Database and Broader Regulatory Efforts
The CBN emphasized that access to the BVN database will remain strictly limited to licensed financial institutions, with special access granted only in exceptional cases that comply with existing laws. This latest directive underscores the CBN's ongoing efforts to tighten regulations around identity verification and transaction monitoring, particularly as digital payments and online banking continue to expand across Nigeria.
These measures highlight the CBN's commitment to protecting customer funds and boosting transparency in the financial sector, aligning with previous initiatives such as stress tests for commercial banks to monitor the health and resilience of Nigeria's banking system.
