FinTechs and non-bank financial institutions are officially prohibited from using BVN validation for KYC by the Central Bank of Nigeria.
“We’ve recently been made aware of a regulatory order 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,” Paystack wrote in an email to its customers.
Any non-bank in Nigeria that provides BVN Validation services is affected by this directive.
As a result of this information, the BVN Resolve service will be temporarily unavailable beginning at midnight on April 8, 2021.”
Previously, the CBN Regulation required banks and other financial institutions to use BVNs as forms of KYC for customers seeking to open accounts.
Because of the suspension, non-bank financial institutions have to find other ways to conduct KYC for their customers.
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