CBN tightens BVN rules, introduces fraud watchlist for bank customers

The Central Bank of Nigeria has introduced new rules to strengthen fraud monitoring in the banking system, including the creation of a temporary watchlist for Bank Verification Numbers linked to suspicious transactions.

The directive was contained in a circular dated March 12, 2026, titled “Addendum to the Revised Regulatory Framework for Bank Verification Number (BVN) Operations and Watch-List for the Nigerian Banking Industry 2021.”

The circular, signed by Musa I. Jimoh, was addressed to all banks, financial institutions and payment service providers operating in Nigeria.

Temporary watchlist for suspicious transactions

Under the new rules, financial institutions must create and maintain a temporary watchlist for BVNs associated with suspected fraudulent activities reported within the banking system.

According to the apex bank, a BVN may remain on the watchlist for up to 24 hours while the customer is contacted to clarify the flagged transaction.

The regulator said the measure is intended to help banks quickly identify suspicious activity while allowing affected customers the opportunity to explain or resolve the issue before further regulatory action is taken.

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Stricter rules on BVN registration

The revised framework also introduces a stricter age requirement for BVN registration, limiting enrolment to individuals aged 18 and above.

In addition, the central bank has restricted the number of times customers can change the phone number linked to their BVN, allowing only one modification. The rule is intended to reduce identity manipulation and fraud linked to repeated changes in customer contact details.

Access to BVN database restricted

The new directive also tightens access to the BVN database, limiting it to financial institutions licensed by the central bank.

However, the regulator said it may grant access in exceptional circumstances, provided such approvals comply with existing legal and regulatory provisions.

Implementation begins May 2026

The BVN database serves as a critical identity system used by regulators and banks to monitor transactions, track credit exposure, and combat financial fraud across the banking industry.

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By introducing the temporary watchlist and tightening identity controls, the central bank said it aims to strengthen real-time fraud detection and improve the integrity of customer records across the financial system.

According to the circular, the new provisions will take effect on May 1, 2026, and all banks, financial institutions, and payment service providers have been directed to ensure full compliance with the updated framework.