CBN Orders Banks to Create Temporary BVN Fraud Watchlist 

The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to establish a temporary watchlist for Bank Verification Numbers (BVNs) linked to suspected fraudulent transactions, as part of new measures to strengthen fraud detection across the banking system.

The directive was issued in a circular sent to banks, financial institutions, and payment service providers. The policy will take effect May 1, 2026.

The circular, titled “Addendum to the Revised Regulatory Framework for BVN Operations and Watchlist for the Nigerian Banking Industry 2021,” was signed by the Director of the CBN’s Payments System Policy Department, Musa Jimoh.

Under the new rule, financial institutions must place BVNs linked to suspected fraud on a temporary watchlist for up to 24 hours. During this period, the account holder will be contacted and asked to explain the suspicious transaction.

According to the CBN, the measure is designed to help banks quickly investigate potentially fraudulent activities before further transactions take place.

The apex bank explained that the directive is part of its broader responsibility to maintain financial system stability and strengthen fraud prevention across Nigeria’s banking sector.

The new guidelines also introduce stricter controls on BVN registration and phone number updates.

The CBN said BVN enrolment will now be restricted to individuals aged 18 years and above, reinforcing existing identity verification standards in the banking system.

In addition, the regulator stated that phone numbers linked to a BVN can only be changed once, a move aimed at preventing fraudsters from repeatedly altering contact details to bypass security checks.

Access to the BVN database will remain limited to financial institutions licensed by the Central Bank of Nigeria. However, the regulator noted that it may grant access in special cases where necessary and in line with existing laws.

The CBN emphasised that all banks and financial institutions must comply with the new provisions before the May 1, 2026, implementation date.