The Central Bank of Nigeria (CBN) has mandated commercial banks to obtain the social media handles of customers as additional means of identification.
This was disclosed in the apex bank’s “Customer Due Diligence Regulations 2023” published on CBN website on Friday.
“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,” the document reads in part.
According to the CBN, the objective of the regulation is 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.”
If implemented by commercial banks, this development will see Nigerians add their social media accounts to their bank details.
Here are things to know about new CBN customer due diligence rules
Customer Due Diligence Regulations 2023 requires financial institutions to establish internal processes and procedures to carry out customer due diligence measures for potential and existing customers along with occasional customers.
Banks and other financial institutions must identify customers, either 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. The regulations emphasise the need to identify politically exposed persons.
To verify customer identities, financial institutions must engage 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 emphasise the importance of record-keeping and maintaining up-to-date customer information.
Financial institutions must retain records obtained through customer due diligence measures, account files, business correspondence, and analysis results for at least five years after the termination or cessation of a business relationship or an occasional transaction.
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