Justice Nnamdi Dimgba of the Federal High Court in Abuja has granted a request by Attorney General of the Federation, Abubakar Malami, for a temporary forfeiture of all funds held in bank accounts not linked to Bank Verification Numbers, BVN.
Also to be forfeited are funds in accounts whose ownership could not be identified.
The latter are accounts without sufficient know-your-customer credentials, PREMIUM TIMES has reported. .
The order followed an originating motion of notice filed by Mr. Malami on behalf of the Nigerian government on September 28.
Justice Dimgba granted all the nine reliefs sought by Mr. Malami —himself represented by a lawyer, Usman Dakas— on October 17.
The court ordered all the 19 deposit money banks, DMBs, operating in the country to release to Nigerian government names of accounts not yet connected to BVN; account numbers; their outstanding balances; domiciling locations; and domiciliary accounts without BVN and where they are domiciled.
Nigeria deposit money banks that were listed as respondents in the ex-parte suit are: Access Bank, Citi Bank, Diamond Bank, Ecobank, Fidelity Bank, First Bank and First City Monument Bank.
Others are: Guaranty Trust Bank, Heritage Bank, Keystone Bank, Skye Bank, Stanbic IBTC Bank, Standard Chartered Bank, Sterling Bank, Union Bank and United Bank for Africa.
The remaining three are: Unity Bank, Wema Bank and Zenith Bank.
The court also ordered all of them to disclose any investments made with funds and to withhold authorisation for any outward inflow of funds from the accounts. All the details are to be submitted to Nigeria Inter-Bank Settlement System, NIBSS, and the CBN for authentication.
The banks were also directed to publish all bank accounts not linked to BVN in national newspapers with a 14-day notice for individuals with interest in such accounts to come forward and justify why their funds should not be forfeited to the Nigerian government.
Mr. Dimgba also ordered the CBN, which was joined as 20th respondent alongside the 19 DMBs, to appoint an official who will examine all the details submitted to the apex bank for compliance.
The government argued the matter under Section 3 of the Money Laundering Act, 2011.
The section said banks must “ensure that documents, data or information collected under the customer due diligence process is kept up-to-date and relevant by undertaking reviews of existing records, particularly for higher risk categories of customers or business relationships.”
The Bank Verification Number is a unique identification number that can be verified and used to transact business across all the banking platforms in Nigeria.
The CBN imposed the policy to capture customers’ data for financial transactions and check fraud in the banking system.
Registration for BVNs commenced on February 14, 2014, across the country. The CBN said over 20.8 million customers enrolled 40 million bank accounts before the October 31, 2015, final deadline for customers residing within the country.
The CBN extended the deadline for Nigerians in the diaspora to December 2016 to sign up for the BVN system. But hundreds of thousands home and abroad are still believed to be left behind.