Justice Nnamdi Dimgba who issued a court order authorizing the interim forfeiture of funds in accounts with no BVN, has modified the order. This was done during yesterday;s hearing of the court case.

Having listened to all counsel on record, and with the consent of all parties represented, I hereby revise Relief 4 of the court’s order of October 17, 2017 such that the new Relief 4 shall be: ‘An interim order of the honourable court stopping all outward payments, operations or outward transactions (including any bill of exchange) in respect of the accounts pending the linking of the accounts to a Bank Verification Number.

As part of the modification, banks will not require the permission of the court to unfreeze accounts of customers that have regularized their Bank Verification Number (BVN) registration. Other parts of the judgement however remain unchanged. Hearing of the case has been adjourned till the 11th of December.

Why the banks asked for the modification

The implication of the initial court order was that customers whose accounts were frozen, would have remained so till the judgement was issued in respect of the court case. pres

Background to this

The Federal Government had in October last month, obtained a court order seeking interim forfeiture of funds in bank accounts with no Bank Verification Number (BVN) or Know Your Customer (KYC) requirements.
The Federal Government also sought the following information from the banks.
• Names of accounts without BVN.
• Account Numbers.
• Outstanding balances.
• Domicilary accounts without BVN.
• Branch/locations where these accounts are domiciled.

Business day

In addition, the government has also sought the approval of the court to instruct the banks to disclose any investments made with these funds and to freeze any outward movement from these accounts. The banks have begun compliance with the court order asking them to hand over the records of bank customers to the Central Bank of Nigeria.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com


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