The Central Bank of Nigeria (CBN) has suspended Paystack and other Non-Banks financial technology firm from offering the BVN validation services.
Paystack sent an email to all its users concerning the CBN ban which is stated below.
“We’ve recently been made aware of a regulatory directive from the primary custodian of Nigeria’s BVN service to all their partners to suspend the provision of the BVN validation service to their third-party partners. In light of this news, we’re hereby informing you that the BVN Resolve service will be temporarily unavailable starting at midnight, today, April 8”
Paystack also added that BVN Resolve Service will be going offline from April 8.
Techkonet could remember CBN AML/CFT Regulation 2018, allowed Banks and other companies to use Bank Verification Number (BVN) as forms of identification for users who wanted to open an account.
The Regulation is stated below;
All institutions wishing to establish account or business relationship with the Bank shall provide proof of address, while operators of the account shall be required to provide other forms of identification, such as international passport/driver’s license/national identity card and Bank Verification Number (BVN)
With this suspension, Fintech banks have lost a means of identifying its customers in the country.
Currently, there are no reasons why the CBN would suspend non-banks from making use of Bank validation as means of identification, could this be a means of communicating to Nigerians to register for NIN in order to become the first means of identification rather than the use of BVN?