There are indications that banks in the country are not complying with the Central Bank of Nigeria’s (CBN) directive to allow customers who seek to close their accounts over issues with their Bank Verification Numbers (BVN) to do so.
The apex bank had, in circular to Deposit Money Banks (DMBs) posted on its website on February 25, 2016, entitled, “Re: Clarification on accounts with BVN related issues”, directed them to allow customers who had such issues and as a result, wished to close their accounts, to do so.
However, findings by New Telegraph revealed that despite the CBN directive, customers who have been unable to link their BVNs to their accounts since the deadline for the exercise lapsed last October and have sought to close such accounts, have been prevented from doing so by their banks.
A Security Officer with a Lagos- based publishing company, said that he had made repeated attempts to close his accounts but that his bank refused his request on the grounds that the name on his BVN database is different from the one that he used to open the account with the financial institution.
He said: “I registered for my BVN in Guaranty Trust Bank. But when I tried to link my BVN to my second account in Stanbic IBTC, they refused because they said the name that I used in opening the account is different from what I have on my BVN. Despite the fact that I took out a change of name in a newspaper to prove that I was the same person, they still refused and insisted that I must get an International Passport, a Driver’s Licence or National Identity Card to confirm my identity”.
He stated that because he needed to urgently access the funds in that account and could not wait for the two or three month period that he had been informed it would take to obtain either of the required identification documents, he asked to close the account but the bank denied his request.
“They said that unless I produce my International Passport, Driver’s Licence or national identity card bearing the names that I have on my BVN they would not allow me to access or close the account. I have applied for the national identity card but from what I’m hearing, it would take sometime before this would be ready,” he said.
Reacting to the Security Officer’s experience, a bank official, who asked not to be named, explained that while the CBN had indeed directed that customers with BVN related issues who wished to closed their accounts should be allowed to do so, there were some technical issues regarding how the cheques that would be used to pay such customers would be raised.
The bank official said, “The CBN did direct that customers can close their accounts but the circular was not clear on the payment of the money to the customer. So, instead of closing such accounts, some banks will ask the customer to produce a valid means of identification.”
It will be recalled that in the CBN circular, which was signed by the Director, Banking and Payments System Department, Mr. Dipo Fatokun, the regulator stated, “Customers that wish toclose their accounts should be allowed to do so.
Where the account is not linked with the BVN, a payment instrument should be issued in the name in which the account was opened. In cases where the balance on the account is more than what is legally allowed on a paper instrument (i.e. #10 million), the bank should seek for and obtain clearancefrom the EFCC (NFIU) before such accounts can be closed and the balance transferred electronically to another account.”
It further stated, “Minor correction of name, due to misspelling e.g. Osikoya written as Oshikoya , should be allowed, with supporting documents , such as international passport ,showing the correct name. “Change of names that are totally different (e.g. Ezra Abu changing to Aminu Umar) or partially different (e.g. Ezra Abu Jide to Ezra Abu Olubaje) should only be allowed after thecustomer has produced supporting documents to the change of the name, and this should be reported to the Nigerian Financial Intelligence Unit (NFIU) as a suspicious transaction by the banks
