CBN Introduces New BVN Fraud Watchlist Rule for Banks Starting May 2026

The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to create and maintain a temporary watchlist for Bank Verification Numbers (BVNs) connected to suspected fraudulent transactions.

This new directive will take effect from May 1, 2026, as part of efforts to strengthen security within Nigeria’s banking system and curb financial fraud.

The instruction was issued in a circular sent to banks, financial institutions, and payment service providers. The circular is titled “Addendum to the Revised Regulatory Framework for BVN Operations and Watchlist for the Nigerian Banking Industry 2021” and was signed by the Director of Payments System Policy Department at the CBN, Musa Jimoh.

According to the apex bank, the temporary watchlist will include BVNs flagged by financial institutions after detecting suspicious transactions. The measure is designed to enable banks to quickly review questionable activities and obtain clarification from account holders.

The CBN stated that any BVN placed on the temporary watchlist will remain there for a maximum period of 24 hours. During this time, the owner of the BVN will be contacted by the relevant financial institution to explain or clarify the suspicious transaction.

The banking regulator explained that this policy is part of its mandate to promote financial system stability and enhance fraud prevention mechanisms across the Nigerian banking industry.

In addition to the temporary watchlist requirement, the CBN introduced new rules regarding BVN registration and phone number updates.

The bank announced that only individuals who are 18 years and above will be eligible to enroll for a Bank Verification Number. This requirement is intended to ensure that BVN registration aligns with standard banking regulations and identity verification practices.

The CBN also introduced restrictions on phone number changes linked to a BVN. Under the new rule, customers will only be allowed to modify the phone number attached to their BVN once.

This measure is aimed at reducing the misuse of BVN-linked phone numbers often exploited in fraudulent activities and unauthorized account access.

Furthermore, the apex bank clarified that access to the BVN database will remain strictly limited to financial institutions licensed by the Central Bank of Nigeria.

However, the CBN noted that it retains the authority to grant access to the BVN database in exceptional circumstances, provided such access complies with existing laws and regulatory provisions.

The regulator emphasized that all banks, financial institutions, and payment service providers must comply with the updated rules before the May 1, 2026 implementation date.

Industry observers believe the policy will strengthen fraud monitoring across the banking sector while improving transparency and accountability in digital financial transactions.

The move comes as the Central Bank continues to introduce tighter regulations to safeguard Nigeria’s financial ecosystem and protect bank customers from rising cases of financial fraud.