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KYC: CBN directs banks, OFIs to obtain customers’ social media handles, others for identification

*The Central Bank of Nigeria issues fresh regulations designed to provide additional customer due diligence measures for banks and other financial institutions under its regulatory supervision in the country 

Isola Moses | ConsumerConnect

As part of effort aimed at strengthening the identification process in the country’s banking system, the Central Bank of Nigeria (CBN) has mandated Deposit Money Banks (DMBs) and Other Financial Institutions (OFIs) to obtain the social media handles of their customers.

ConsumerConnect reports the CBN stated this in its ‘Central Bank of Nigeria (Customer Due Diligence) Regulations, 2023’ document published on the Bank’s corporate Web site Friday, June 23, 2023.

Mr. Folashodun Shonubi, Ag. Governor of CBN 

The Bankers’ Bank also urged banks and other financial institutions to obtain e-mail addresses, telephone numbers, and residential addresses, and related useful information from their customers to beef up the Know Your Customer (KYC) initiative in the Nigerian banking sector.

Objectives of new  regulations

According to the Central Bank of Nigeria, the new regulation was designed to provide additional customer due diligence measures for financial institutions under its regulatory purview.

It is designed “to provide additional customer due diligence measures for financial institutions under the regulatory purview of the Central Bank of Nigeria to further their compliance with relevant provisions of the Money Laundering (Prevention and Prohibition) Act (MLPPA), 2022, Terrorism (Prevention and Prohibition) Act (TPPA), 2022, Central Bank of Nigeria (Anti-Money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing of Weapons of Mass Destruction in Financial Institutions) Regulations, 2022 (CBN AML, CFT and CPF Regulations) and international best practices.

“And enable the CBN to enforce compliance with customer due diligence measures in line with the CBN AML, CFT and CPF Regulations.”

Under its customer identification column, the CBN further stressed that financial institutions must identify their customers (whether permanent or occasional, and whether natural or legal persons or legal arrangements) and obtain the following information:

“For Individuals — legal name and any other names used (such as maiden name), permanent address (full physical address), residential address (where the customer can be located), telephone number, e-mail address, and social media handle; date and place of birth, Bank Verification number; Tax Identification number; nationality; occupation; public position held; and name of employer.”

The Bank as well noted that an individual must have “an official personal identification number or other unique identifier contained in an unexpired document issued by a government agency that bears the name, photograph, and signature of the customer, such as a passport, national identification card, residence permit, social security records, or drivers’ license.”

Part of the requirement includes “Type of account and nature of the banking relationship, and signature, and politically exposed person status.

Besides, financial institutions shall not establish or keep anonymous accounts, numbered accounts, or accounts in fictitious names, stated the fresh regulation.

According to the banking sector regulator, these new regulations contained in the document shall apply to all financial institutions under the purview of the CBN.

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