The Central Bank of Nigeria has issued a directive to Financial Institutions, requiring them to collect various customer information such as social media handles, email addresses, telephone numbers, residential addresses, and more.
This directive is a component of the newly introduced ‘Central Bank of Nigeria (Customer Due Diligence) Regulations, 2023’ document, which aims to strengthen the identification process within the banking system.
The CBN has introduced these regulations to enforce enhanced customer due diligence measures for financial institutions operating under its supervision.
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.
In the section pertaining to customer identification, the banking regulatory body has specified that financial institutions are required to identify their customers, regardless of whether they are permanent or occasional and whether they are individuals, legal entities, or legal arrangements. The following information must be obtained as part of this process:
“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, email 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.”
Additionally, it was emphasized that individuals must possess one of the following valid documents: an unexpired passport, national identification card, residence permit, social security records, or driver’s license.
Furthermore, the regulations include the need to specify the type of account, describe the nature of the banking relationship, provide a signature, and determine the politically exposed person’s status as part of the requirements.
The document also outlines distinct obligations for legal entities and legal arrangements. The Central Bank of Nigeria has stated that these regulations are applicable to all financial institutions operating under its supervision.