NDIC Explains Delayed Reimbursement to Heritage Bank Customers, says KYC is Mandatory

The Nigeria Deposit Insurance Corporation (NDIC) has explained the reason for the delay in the reimbursement of the insured deposit funds to customers of the defunct Heritage Bank, citing non-compliance with KYC protocols as a major challenge.

In his address at the 2024 edition of the NDIC Editors forum in Lagos, Bello Hassan, NDIC’s managing director, and CEO, urged depositors of the bank, who are yet to receive their insured deposits, to comply with Know Your Customer (KYC) requirements as mandated by the Central Bank of Nigeria (CBN).

According to him, the challenges faced in reimbursing some depositors’ funds are such that compliance with KYC protocols could resolve such issues effectively.

Hassan, represented by Mustafa Ibrahim, executive director of operations, listed the absence of Bank Verification Numbers (BVN), placement of restrictions on some accounts, and name mismatches as some of the challenges hindering the reimbursement.

He said, “I wish to reiterate that the Corporation is not unaware of the case of some depositors who are yet to access their guaranteed sums. This development is a result of reasons ranging from reconciling inconsistencies in the defunct bank’s depositor database to the absence of Bank Verification Numbers (BVN), placement of restrictions on some accounts, and, in some cases, name mismatches.”

He assured depositors of prompt payment saying, “The Corporation is working assiduously to resolve these issues and ensure that depositors are promptly paid,” he added.

Recall that the Central Bank of Nigeria (CBN) on June 3, 2024, revoked the license of Heritage Bank Plc leading to its closure and in line with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the NDIC Act 2023, the NDIC was appointed as the liquidator to oversee the bank’s resolution and manage depositor reimbursements.

Investors King reported that on November 8, the NDIC urged unpaid customers to come forward with their BVN, proof of account ownership, and alternative account details and visit the NDIC website, email, and social media platforms to claim their funds.

The managing director of NDIC, Bello Hassan, through the director of communications and public affairs, Nuhu Bashir, issued this directive during the corporation’s ‘special day’ event at the 36th Lagos International Trade Fair.