Bankers Want BDCs to Verify Customers' Transactions above $10,000

• Top bank executives have lauded the CBN for its recent directive on BVN/NIN linkage to banks
• They, however, want similar directives to be replicated with the operations of the Bureaux de Change
• The bankers recommended that customers who transact above 10,000 dollars should be verified

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

The Central Bank of Nigeria's latest directive, which requires the linkage of tier-1 accounts to National Identity Numbers and Bank Verification Numbers, has been lauded by the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN).

According to a Punch report, ACAEBIN also conveyed its desire for more stringent laws governing the fintech industry and the Bureaux de Change.

Prince Akamadu, the association's chairman, made this known at the 57th quarterly general meeting.

Read also

“Your money at risk”: SEC shuts down 13-year-old investment company, sends warning to Nigerians

New directive to reduce fraud

Akamadu acknowledged the effort of regulators, especially the Central Bank of Nigeria, on the recently released directive in the banking system.

According to him, the landmark achievement will reduce fraud via Tier-1 accounts.

However, he stated that the ACAEBIN further recommends that the fintechs be mandated to set up Fraud Desks and hotlines to reach them when necessary.

He said:

“We also recommend stricter regulatory oversight on the activities of Bureaux de Change. This class of operators in the Financial Services industry must be made to verify the BVN of all customers who transact above 10,000 dollars.”

Earlier, the federal government said it had begun the transfer of N25,000 to 15 million households but exempted those without the National Identification Numbers (NINs) and Bank Verification Numbers (BVNs).

Read also

World Bank accuses NNPC of lying about earnings, company fires back, releases figures

It stated that the programme is part of the National Social Investment Programme of the Nigerian government, conceived to change the lives of millions of citizens living in extreme poverty, lift their living standards, and improve the economy.

CBN finally gives reasons behind cash scarcity in banks, ATMs, suggests solution

Legit.ng reported that the current cash shortage in Nigeria, according to Central Bank of Nigeria (CBN) governor Yemi Cardoso, results from a significant weakness in the naira redesign policy's execution.

The CBN governor reportedly mentioned flaws in several regulations and said that a thorough assessment project is still in progress.

In his opinion, the main offender is the poorly done redesign of the naira.

Source: Legit.ng