ADF approves $ 8m for WAMI’S banking identification, sector efficiency

THE Board of Directors of the African Development Fund ( ADF) has approved $ 8 million in funding toward the establishment of a digitally interoperable unique bank identification system and harmonised customer identification framework for The Gambia, Guinea, Liberia and Sierra Leone.

Implementation of the project will commence in July 2023, led by the West African Monetary Institute ( WAMI), working with central banks of the participating countries and in close collaboration with banking and non- banking financial service providers.

The project is expected to enhance financial sector efficiency within the participating countries, leading to increased access to finance and further regional integration efforts. Approval of funding from the Bank’s concessional lending window was made on March 29.

The new bank identification system will link the banking accounts of individuals across different financial service providers.

Over 53 financial service providers across the participating countries will be included in the project. This will allow them to verify their clients’ identities on an ongoing basis ( KnowYour- Customer or KYC), combat fraud, discourage loan defaulting and strengthen correspondent banking relationships. On the part of customers, KYCcompliant finance sectors will bolster trust and confidence and ultimately, encourage access and usage of financial solutions.

WAMI Director General, Dr. Olorunsola E. Olowofeso, said: “The Unique Bank Identification ( UBI) and Digital Interoperability project was borne from the success of the Bank Verification Number ( BVN) implemented by the Central Bank of Nigeria.