Nigerian fintech company OPay has announced a crackdown on accounts lacking proper Know-Your-Customer (KYC) verification in a bid to curb fraudulent activities.
Starting March 1, 2024, all accounts on the platform will be required to be linked with the National Identification Number (NIN) or face blocking.
This move comes as a response to concerns about gaps in OPay’s registration and verification processes, highlighted in a recent report. Addressing these concerns, OPay officials outlined several new measures including mandatory NIN for new and existing accounts. Going forward, NIN will be a mandatory requirement for both new and existing accounts. Customers with tier 1 accounts (basic accounts with limited functionalities) will be prompted to update their information with NIN to continue transactions. Those who fail to comply by March 1 will be locked out.
Another step is enhanced facial verification. OPay is also deploying a new system for facial verification, backed by backend checks against NIN and BVN (Bank Verification Number) information. This aims to address concerns about the effectiveness of the current facial verification process.
OPay’s Director of Partnerships, Ikponmwosa Kolawole Odiase, assured customers that all fraudulent accounts will be “yanked off” the platform. This points to a proactive approach to combatting fraudulent activity.
While acknowledging the potential impact on financial inclusion, OPay recognises the necessity of these measures to address fraud and comply with Central Bank of Nigeria (CBN) directives. The CBN recently mandated that all bank accounts without BVN and NIN be placed on “Post No Debit” by April 2024, effectively freezing transactions.
In implementing these stricter KYC measures, OPay aims to enhance platform security as linking accounts with NIN and BVN helps verify customer identities and reduces the risk of fraudulent activity. The platform also aims to protect customer deposits from scams and unauthorised transactions, while also aligning with the CBN’s push for stronger KYC practices within the financial system.
While the March 1 deadline may affect some users, OPay emphasises its focus on financial inclusion. The platform believes that the long-term benefits of a secure platform outweigh any temporary challenges.
When is the deadline of blocking account the real original deadline