CBN makes Social Media Handle mandatory KYC requirements for bank customers

CBN makes Social Media Handle mandatory KYC requirements for bank customers

NAIRAMETRICS

The Central Bank of Nigeria (CBN) has released its Customer Due Diligence Regulations 2023 or financial institutions under its regulatory purview as it takes a decisive stance against financial crimes.

The CBN’s latest move aims to bolster compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) provisions while aligning with international best practices.

In an effort to enhance the accuracy and depth of customer identification, the CBN has made it mandatory for financial institutions to collect and verify customers’ social media handles as part of their Know Your Customer (KYC) requirements.

New Regulation

These new regulations, which complement existing provisions outlined in the CBN’s Anti-Money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing of Weapons of Mass Destruction in Financial Institutions Regulations of 2022, are designed to fortify the fight against money laundering, terrorism financing, and proliferation financing.

Under the new regulations, financial institutions are required to establish internal processes and procedures for conducting customer due diligence measures for both potential and existing customers, including occasional customers.

They must identify customers, whether individuals or legal entities, and obtain specific information such as legal names, addresses, contact details, identification documents, account types, nature of banking relationships, and signatures. Furthermore, the regulations emphasize the need to identify politically exposed persons (PEPs).

  • To verify customer identities, financial institutions must rely on reliable and independent source documents, data, or information.
  • For individuals, this involves confirming date of birth, residential address, contact details, and the validity of official documentation.
  • In the case of legal persons or legal arrangements, financial institutions are required to undertake searches on public registries or databases, review annual reports or relevant financial statements, and examine board resolutions.

The regulations also emphasize the importance of record-keeping and maintaining up-to-date customer information.

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CBN makes Social Media Handle mandatory KYC requirements for bank customers

 

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