The Central Bank of Nigeria (CBN) has issued a directive to financial institutions, mandating them to collect the social media handles, email addresses, telephone numbers, residential addresses, and more from their customers. This new regulation is part of the customer due diligence measures aimed at strengthening the identification process within the banking system. The CBN announced this in its recently released document titled “Central Bank of Nigeria (Customer Due Diligence) Regulations, 2023.”
The CBN clarified that the purpose of the new regulation is to enhance customer due diligence practices for financial institutions under its regulatory oversight. It stated, “The objective is to provide additional customer due diligence measures for financial institutions regulated by the Central Bank of Nigeria, in order to ensure 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.”
According to the customer identification requirements specified by the banking regulator, financial institutions must identify their customers, whether they are permanent or occasional, and whether they are individuals or legal entities or arrangements. The information to be obtained includes legal name and any other names used, permanent address (complete physical address), residential address, telephone number, email address, and social media handle. Additionally, details such as date and place of birth, Bank Verification Number, Tax Identification Number, nationality, occupation, public position held, and employer’s name must be obtained for individuals. The CBN also highlighted the need for individuals to provide valid identification documents like an unexpired passport, national identification card, residence permit, social security records, or driver’s license.
The directive further covers the type of account, nature of the banking relationship, signature, and politically exposed person status. Separate requirements are outlined for legal entities and arrangements. The CBN emphasized that these regulations apply to all financial institutions under its supervision.
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