By Dipo Olowookere

Bank customers involved in fraudulent activities will now be placed under the radar of the Central Bank of Nigeria (CBN).

The country’s apex bank disclosed yesterday that it was working out regulatory framework that would enable it either blacklist these set of bank customers or put them on watch-list across the banking industry.

Speaking at the Finance Correspondents Association of Nigeria (FICAN) Bi-Monthly Forum in Lagos, CBN Director, Banking and Payment Systems Department, Mr Dipo Fatokun, said the Bank Verification Number (BVN) it recently introduced would be used to achieve this.

Mr Fatokun explained that the BVN involves capturing of customers’ physiological or behavioural attributes like fingerprint, signature among others which is coordinated by the CBN and banks in collaboration with the Nigeria Interbank Settlement System (NIBSS).

At the event hosted by the CBN, Mr Fatokun, who spoke on the theme ‘Recent Developments in the Electronic Payments System and Implications for Consumers of Electronic Payment Services’ disclosed that data from the apex bank showed that although e-fraud rate in terms of value dropped by 63 per cent last year, after the BVN introduction and improved collaboration among banks via the fraud desks, the total fraud volume rose significantly by 683 per cent within the year compared to 2014 figures.

He further disclosed that Nigeria experienced a total of 3,500 cyber-attacks with 70 per cent success rate and loss of $450 million within the last one year mainly through cross channel fraud, data theft, email spooling, phishing, shoulder surfing and underground websites.

“I want to assure you that the BVN has assisted us a lot in the banking system. It has assisted us to check frauds, and we are working on a framework, that will enable us if not to blacklist customers, because of some legal implications, but at least to watch-list a customer that is identified to have been fraudulent, or have done what he is not supposed to do across the banking sector,” he said.

He said the PSV 2020 strategy is aimed at providing a roadmap for efficient payments system infrastructure that would be nationally utilized and internationally recognized.

“The payments system plays a very crucial role in any economy, being the channel through which financial resources flow from one segment of the economy to the other. In setting out the objectives of the National Payments System (NPS), the goal is to ensure that the system is available without interruption, meet as far as possible, all users’ needs, and operate at minimum risk and reasonable cost,” he said.

He added that the BVN project is jointly undertaken by the CBN in collaboration with the Bankers Committee and remains a strategy of ensuring effectiveness of Know Your Customer (KYC) principles.

“Each Bank customer is given a unique identity across the Nigerian Banking Industry, including Nigeria bank customers in Diaspora,” he said.

The CBN Director said the number of BVN linked to customers’ accounts as at August 23, this year was 36.7 million while the total number of individual customers in the banks was reported as 59.9 million as at the same date.

“Any bank customer resident in Nigeria without a BVN would be deemed to have inadequate KYC while effort is on-going to ensure that customers of Other Financial Institutions (OFIs) such as Microfinance Banks (MFBs) & Primary Mortgage Institutions (PMIs) are brought into the system begin to get their BVNs,” he said.

Mr Fatokun said the e-Payment remains an initiative of CBN under the Payments System Vision 2020 as part of the overall FSS 2020 Strategy adding that one of the CBN mandates is the promotion of a sound financial system (Section 2 (d) of the CBN Act 2007).

He disclosed that Section 47(2) of the CBN Act 2007, stipulates that the CBN shall continue to promote and facilitate the development of efficient and effective systems for the settlement of transactions, including the development of electronic payment systems, adding that the promotion of a sound financial system entails active support for the effectiveness, efficiency and systemic safety of the payments system.

http://www.businesspost.ng/2016/09/11/cbn-monitor-dubious-bank-customers/

A welcome development.

Go and monitor rotimi amaechi first...Retards!

a jobless visionless and useless CBN

HungerBAD:
A welcome development.

//

easier said than done. start from CBN first and other banks

Thrash! Dey shud instead find a solution to the lingering devaluation of naira.

And do they need to announce this before its done?

Action speaks louder

Good development, nigeria shall be better. This country needs re-orientation. Both in private and public organization. The rate of recklessness is too much.

Wat about banks that deduct illegal funds from customers , leave 3k in ur account before 2 months wat u will see is 500naira , how does that encourage savings ?

Lol

Noise makers...

Hmmmm

LabiaMajoraDest:
Go and monitor rotimi amaechi first...Retards!

Bukola Saraki

Tunde Fashola

and the list continue....


Useless media noise. ONLY IN NIGERIA.

lumzybo:
And do they need to announce this before its done?

Action speaks louder

Than Voice !


APC
APC
APC

Miles300:
Wat about banks that deduct illegal funds from customers , leave 3k in ur account before 2 months wat u will see is 500naira , how does that encourage savings ?

Bro., that is another level of bank robbery.


Deducting illegally from savings account and the useless CBN is making deafening noises over the places.

Noise!

Crap.....toothless bulldog.


We want the CBN to blacklist BVN of fraudsters and other receiving accounts. This is a recommendation put forward through the bankers committee early this year.

This will stop fraudster s from opening other accounts.

Local central bank

Buhari is making everything impossible in dis country now..

If i Have 40 Milla in my account now.. I cant transfer or do any huge transactions bcuz EFCC will come and be asking me "How i made my own money"

He put all the countries money in the CBN that is not a commercial bank.. how does he expect the economy to move forward..

He rushed the Implementation of TSA without putting pallaitives

Who advices dis dude for heavens sake?

Lots of questions few or no answers


No wonder Femi Adesina and Liar Mohammed are becoming mute..

CBN is just confused and pathetic under Emefiele. The earlier is is replaced, the better for the economy.

Miles300:
Wat about banks that deduct illegal funds from customers , leave 3k in ur account before 2 months wat u will see is 500naira , how does that encourage savings ?

Especially EcoBank fraudulent monthly service charge of N100.

That bank is liquidating my share proceeds.

I get like N90 from my share monthly while EcoBank charges N100 monthly on my savings account. #Negodu? Am permanently indebted to them.

Mtchewww

Yolo

What were they doing before

The system is rigged to make the wealthy wealthier

LabiaMajoraDest:
Go and monitor rotimi amaechi first...Retards!

Do you have anything on Ameachi?