The Central Bank of Nigeria (CBN) has directed deposit money banks (DMBs) and other financial institutions to obtain customers’ social media handles/addresses and other critical personal information in a new move in its Know Your Customer (KYC) regulatory guidelines.
The apex bank as part of its due diligence regulations all financial institutions operating under its supervisory purview to obtain e-mail addresses, telephone numbers, and residential addresses, among other critical information from customers.
In its latest directive titled “Central Bank of Nigeria (Customer Due Diligence) Regulations, 2023” published on its website on Friday, the CBN stated that the new regulations were aimed at providing additional customer due diligence measures for financial institutions under its regulatory purview.
Specifically, the CBN stated that the objectives of the new regulations were “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”, it added
On the regulations under its customer identification column, the apex bank directed the financial institutions to identify their customers (whether permanent or occasional, and whether natural or legal persons or legal arrangements) and obtain very crucial information.
The CBN specified: “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.”
It also stated 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.”
Other requirements the apex bank set under its new regulations include the type of account and nature of the banking relationship, and signature, and politically exposed person status, stressing that financial shall not establish or keep anonymous accounts, numbered accounts, or accounts in fictitious names.
