Despite BVN, FG asks bank account holders to register again

The Federal Government of Nigeria has directed Nigerians with accounts in any financial institutions to obtain complete and submit Self – Certification Forms to their respective financial institutions.

The financial institutions comprise of banks, insurance companies and others.

The forms, according to a tweet thread from the verified account of the Government of Nigeria explained that the forms are required by the relevant financial institutions to carry out due diligence procedures in line with the Income Tax Regulations 2019.

The federal government said individuals who hold accounts in different financial institutions would have to collect and submit separate forms to each one of the institutions.

Three categories of forms for entities, individuals and controlling person (individuals having a controlling interest in a legal person, trustee, etc) are said to be available

“The forms are required by the relevant financial institutions to carry out due diligence procedures in line with the Income Tax Regulations 2019,” it said.

“Failure to comply with the requirement to administer or execute this form attracts sanctions which may include monetary penalty or inability to operate the account.”

It is not yet clear how the self-certification process differs from the bank verification number (BVN) and national identification number (NIN).

The BVN is a prerequisite to owning a bank account and it is used to link all bank and pension accounts owned by an individual.

The NIN is also another form of identification introduced by the federal government and is a prerequisite for getting an international passport.

The National Identity Management Commission (NIMC) currently harmonising the NIN and BVN and has set a five-year target to register all Nigerians after a $430 million World Bank loan for the Nigeria digital identification for development project.

In May, Aliyu Aziz, the NIMC director-general, said 14 million BVN had been harmonized with NIN.

 In September, the Federal Inland Revenue Service (FIRS) launched an automatic exchange of information-common reporting standard (AEOI-CRS) system for the use of financial institutions which it described as a step towards “aligning the country’s tax system with global standards”.

The federal government has also not announced what provisions would be made for citizens in the diaspora given that they partook in the NIN, BVN enrollment.

Nigerians on social media have begun to react to the announcement with some requesting for an electronic certification option considering the COVID-19 pandemic.

Related news

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.