The Central Bank of Nigeria (CBN) has issued a directive mandating commercial banks to obtain additional personal information from their customers.
In the newly published ‘Central Bank of Nigeria (Customer Due Diligence) Regulations, 2023,’ the CBN aims to enhance the identification process within the banking system by collecting customers’ social media handle(s), e-mail addresses, telephone numbers, residential addresses, and other relevant details.
News About Nigeria confirms that this regulation applies to all financial institutions under the purview of the CBN and is designed to 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).
The CBN states that the purpose of these regulations is to provide additional customer due diligence measures and enforce compliance with the existing regulations.
By collecting this information, financial institutions can enhance their compliance with anti-money laundering and counter-terrorism financing measures while adhering to international best practices.
The customer identification requirements outlined by the CBN include obtaining various details for individuals, such as their legal name, permanent address, residential address, telephone number, e-mail address, social media handle, date and place of birth, Bank Verification Number, Tax Identification Number, nationality, occupation, public position held, and name of employer.
Customers will also need to present valid identification documents such as a passport, national identification card, residence permit, social security records, or driver’s license.
Additionally, the CBN requires financial institutions to collect information regarding the type of account, nature of the banking relationship, signature, and politically exposed person status.
The regulations also outline separate requirements for legal persons and legal arrangements.
