Chrys
The Central Bank of Nigeria has
mandated that financial institutions obtain the social media handles, e-mail
addresses, telephone numbers, residential addresses, and more of their
customers.
This forms part of its new
customer due diligence regulations and is a bid to further deepen the
identification process in the banking system. The apex bank disclosed this in
its newly released ‘Central Bank of Nigeria (Customer Due Diligence)
Regulations, 2023’ document.
The CBN stated that its new
regulation was created to provide additional customer due diligence measures
for financial institutions under its regulatory purview.
It noted, “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 banking regulator stated 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.”
It further noted that an
individual must have any of an unexpired passport, national identification
card, residence permit, social security records, or driver’s license.
As part of the requirement, it
added, “Type of account and nature of the banking relationship, and signature,
and politically exposed person status.
The document also had separate
requirements for legal persons and legal arrangements. According to the CBN,
the regulations shall apply to all financial institutions under its purview
