Loan Firms Mandated to Submit Customer Data’s to ICAD – CBN

The Central Bank of Nigeria (CBN) has directed all loan and credit distributing financial firms to submit all customer data to the Industry Customer Accounts Database (ICAD) by June 20, 2022.

In a circular obtained by Investors King, the CBN ordered all Other Financial Institutions (OFIs) “to ensure that all their customer accounts comply with the 10-digit Nigeria Uniform Bank Account Number (NUBAN) format, are tagged with Bank Verification Number (BVN) or Taxpayer Identification Number (TIN) for individual and non-individual accounts respectively of the account holder”.

According to the CBN, this is to be “profiled on Nigeria Inter-Bank Settlement System Plc (NIBSS)’ Industry Customer Accounts Database (ICAD) not later than June 20, 2022″.

These remain the conditions for registration in the Credit Risk Management System (CRMS), according to the CBN.

The provisions of the Regulatory Guidelines for the Redesigned Credit Risk Management System for Commercial, Merchant, and Non-Interest Banks in Nigeria issued on February 27, 2017 and the Additional Regulatory Guidelines for the Operation of the Redesigned CRMS issued on September 10, 2018 to all OFls have been activated, stated the apex bank.

Also, the CBN introduced the CRMS to strengthen credit risk management in commercial, merchant, and non-interest banks, as well as prevent predatory borrowers from weakening the banking system, as part of its efforts to maintain a safe and sound financial system in Nigeria.

The CBN decided that “it has become expedient to commence the enrollment of Other Financial Institutions (OFIs) on the CRMS Platform” after the CRMS was successfully implemented in deposit money banks.

OFls were advised to “note that Bank Verification Numbers (BVN) and Tax ldentification Numbers (TIN) are the only basis for regulatory renditions”.

To ensure full compliance, OFls were reminded “to conclude the tagging of all live credit files for all individual and non-individual borrowers with BVN and TIN respectively by May 14, 2021”.

Furthermore, the concerned OFls were advised to read the Regulatory Guidelines for the Operations of the Redesigned CRMS for Commercial, Merchant, and Non-Interest Banks in Nigeria (February 2017) as well as the additional regulatory guidelines published in September 2017.

The following principles underpin the regulatory guideline for the revamped CRMS: Before distribution of any loan or credit facility, customers’ information must be entered into the CRMS.