In a move aimed at strengthening the identification process in the banking sector, the Central Bank of Nigeria (CBN) has issued a directive requiring Banks to obtain customers’ social media handles, along with other personal details such as email addresses, phone numbers, and residence addresses.
The CBN recently published the ‘Central Bank of Nigeria (Customer Due Diligence) Regulations, 2023’ on its official website, outlining the new requirements for financial institutions under its regulatory oversight. These regulations seek to provide additional measures for customer due diligence and ensure compliance with the Money Laundering (Prevention and Prohibition) Act (MLPPA) 2022, Terrorism (Prevention and Prohibition) Act (TPPA) 2022, and the 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), as well as international best practices.
The primary objective of these regulations, according to the CBN, is to enable financial institutions to enhance their compliance with relevant laws and regulations pertaining to customer due diligence. By obtaining customers’ social media handles, the CBN aims to bolster the identification process, thereby further mitigating the risk of illicit activities in the financial system.
Under the new rules, financial institutions are required to gather comprehensive information about their customers, including legal names, addresses, telephone numbers, email addresses, social media handles, date and place of birth, Bank Verification number, Tax Identification number, nationality, occupation, public position held, and the name of the employer.
To establish the identity of individuals, the CBN mandates the use of official personal identification numbers or other unique identifiers containing invalid, government-issued documents bearing the customer’s name, photograph, and signature, such as passports, national identification cards, residence permits, social security records, or driver’s licenses.
Additionally, financial institutions must record the type of account and nature of the banking relationship, as well as the customer’s signature and politically exposed person status. The CBN also emphasizes that anonymous accounts, numbered accounts, or accounts under fictitious names are strictly prohibited.
These regulations apply to all financial institutions operating under the purview of the Central Bank of Nigeria, as outlined in the published document. By implementing these enhanced customer due diligence measures, the CBN aims to strengthen the integrity and security of the banking sector while aligning with international standards and best practices.
