Hafsat Bakari, Chief Executive Officer of the Nigeria Financial Intelligence Unit (NFIU), emphasizes the critical role of the Bank Verification Number (BVN) in Nigeria’s fight against financial crimes.
Speaking at the High-Level Roundtable on Public-Private Partnerships (PPPs) to Combat Financial Crimes in Abuja, Bakari describes the BVN as a transformative tool within Nigeria’s anti-money laundering and counter-terrorism financing (AML/CFT) framework. The event, jointly organized by the NFIU and the London Stock Exchange Group (LSEG), brings together stakeholders to discuss enhanced cooperation in tackling financial crimes.
BVN as a Game-Changer in Financial Crime Prevention
Bakari credits the BVN initiative, a partnership between the Central Bank of Nigeria (CBN) and commercial banks, with significantly improving transparency in financial transactions and reducing identity fraud.
“The BVN assigns a unique biometric identifier to each bank customer, linking it to all their accounts, which improves monitoring capabilities and reduces fraudulent activities,” she says.
She underscores that the BVN initiative highlights the potential of PPPs to drive systemic change in combating financial crimes, allowing for more effective collaboration across sectors.
Tackling Global Financial Crimes
Bakari notes that financial crimes often transcend borders and exploit regulatory gaps. “These crimes undermine economic stability, threaten national and global security, and fuel the trade of illicit goods and weapons that destabilize regions,” she states.
She advocates for stronger collaboration among stakeholders to share intelligence and align strategies, emphasizing that no single organization can combat financial crimes alone. According to Bakari, PPPs provide a structured platform for pooling resources and sharing actionable insights to fight financial crimes at all levels.
She also calls for deeper collaboration with international partners, such as LSEG, to enhance Nigeria’s participation in global financial crime prevention initiatives.
Minister of Interior Advocates for Clean Investments
Also addressing the roundtable, Minister of Interior Olubunmi Ojo stresses the importance of promoting clean and transparent investments.
“Collaboration is crucial in the fight against financial crime and in fostering clean investment,” Ojo remarks. “PPPs must be vetted by the NFIU to ensure funds are properly invested in societal development and not misappropriated.”
He encourages government agencies to work together, fostering shared values and a unified approach to financial crime prevention. “We want investments with clear origins, ones that align with our national goals and are investments we can be proud of,” he adds.
BVN Requirement for Financial Accounts
A recent directive from the CBN mandates that all financial accounts, including those of fintech companies, must be linked with a BVN before they can be activated. This ensures that account owners are properly identified and can be easily traced in case of fraud.
As of September 2024, the Nigeria Inter-Bank Settlement System (NIBSS) reports 63.4 million registered BVNs. In comparison, NIBSS data shows that as of July 2024, there are 231.1 million active bank accounts in the country, revealing a significant gap between registered BVNs and the total number of bank accounts. A single BVN can be linked to multiple accounts, highlighting the disparity in the number of accounts and BVNs.
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