Breaking: CBN makes Social Media Handle mandatory KYC requirements for bank customers

CBN new customer due dilligence regulation
By Nairametrics 10 mins ago

The Central Bank of Nigeria (CBN) has released its Customer Due Diligence Regulations 2023 or financial institutions under its regulatory purview as it takes a decisive stance against financial crimes.

The CBN’s latest move aims to bolster compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) provisions while aligning with international best practices.

In an effort to enhance the accuracy and depth of customer identification, the CBN has made it mandatory for financial institutions to collect and verify customers’ social media handles as part of their Know Your Customer (KYC) requirements.

New Regulation
These new regulations, which complement existing provisions outlined in the CBN’s Anti-Money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing of Weapons of Mass Destruction in Financial Institutions Regulations of 2022, are designed to fortify the fight against money laundering, terrorism financing, and proliferation financing.

Under the new regulations, financial institutions are required to establish internal processes and procedures for conducting customer due diligence measures for both potential and existing customers, including occasional customers.


They must identify customers, whether 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. Furthermore, the regulations emphasize the need to identify politically exposed persons (PEPs).

To verify customer identities, financial institutions must rely on 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 also emphasize 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.

Regular reviews of existing customer records are required based on risk categories, with high-risk customers requiring annual reviews, medium-risk customers requiring reviews every 18 months, and low-risk customers requiring reviews every three years.

Social Media Handles

Under the new regulations, financial institutions operating under the regulatory purview of the CBN are now obligated to collect and verify customers’ social media handles as part of their KYC process.

This requirement applies to both individuals and legal entities.

The inclusion of social media handles in KYC requirements aims to enhance the accuracy and depth of customer identification.

By obtaining this additional information, financial institutions can gain valuable insights into customers’ online presence and activities, enabling better assessment of potential risks associated with money laundering, terrorism financing, and proliferation financing.

Optics
The CBN’s decision to include social media handles as a mandatory KYC requirement recognizes the growing influence and prevalence of social media platforms in individuals’ and businesses’ daily lives.

It acknowledges that social media can provide valuable information about customers’ professional networks, affiliations, and potential sources of income.
Financial institutions will be required to establish internal processes and procedures to collect and verify customers’ social media handles accurately.

This information will be used alongside other KYC data, such as legal names, addresses, contact details, and identification documents, to create a comprehensive profile of the customer.

What this means

The addition of social media handles to the KYC requirements reflects the CBN’s commitment to keeping pace with technological advancements and evolving risks in the financial sector.

By adapting regulations to include digital footprints, the CBN aims to ensure that financial institutions have a more holistic understanding of their customers, promoting enhanced due diligence and risk mitigation.
This development serves as a reminder to individuals and businesses to be mindful of their online presence and activities.

Customers should ensure that the information shared on social media platforms aligns with their stated profiles and remains consistent with their financial transactions.

Financial institutions will leverage this information responsibly and strictly adhere to data privacy and protection regulations.

https://nairametrics.com/2023/06/23/cbn-makes-social-media-handle-mandatory-kyc-requirements-for-bank-customers/

" By adapting regulations to include digital footprints, the CBN aims to ensure that financial institutions have a more holistic understanding of their customers, promoting enhanced due diligence and risk mitigation.
This development serves as a reminder to individuals and businesses to be mindful of their online presence and activities. "


From the signing of the Data Protection Act which makes it compulsory for every organisation in Nigeria to collate, store and provide data of every of your customers to the govt agency regulating data now to this, it is only someone who is naive who will think this era will not come after the burning of Lagos in 2020 by those unpatriotic elements hiding under Endsars.

No hiding place again even on Nairaland. All those commiting fraud, criminal defamations, forex change news manipulators and cyberbullying online will now be of risk interest to the banks.

This is a great effort in bringing decency to our society at large, not just to the financial sector, even romance scams and scammers will now be monitored.
God bless Nigeria for ever!

This is anti North, meaning that the 80% of northerners that are not on social media will never operate their bank accounts again?

Na Atiku gave me the statistics, face Atiku o.

some of us that are not on twitter, face, instagram or whatever so does that mean we cant have a bank account?

or do i present my Nairaland handle??

bombing go reduce

The above caption is deceptive, the main message has a different meaning but the mods are looking forbtrafic so will push anything to the front page.

Let's play along.

The government wants no competition

The solution is to monitor you

We have more than enough personal data to work with in Nigeria, duplication of data is what we love doing, all minus no plus. Birth certificate, NIN, Drivers Licence, International Passport, BVN, Phone Registration, Social media registration. All can be done with one data base but we behave as if we don't know all these.

Very good

NwaNimo1:
Dem no fit....

It be like una go dey prepare for another round of court oo

They can not stop us from calling out the government when they are wrong

Abuse of individual freedom. Dead on arrival policy.

And if i refuse?

Gbogbowa:
They can not stop us from calling out the government when they are wrong

You are not calling out govt when you criminally defame and cyberbully others. You are actually breaking the law and it's the job of govt to enforce the laws. If you do it and get away today, tomorrow you will be the victim of another cyberbully and criminal defamer.

Critics are intelligent people courted even by govt because they use facts to influence public opinion. You can't move any needle by committing crimes online.

@FreeStuffsNG

I have seen your propaganda on this board and it's worrisome.
There is nowhere in the Article where it says it's mandatory.

There are people and mostly in rural areas who don't have and have no need for social handles or whatever nonsense you call it.

This is stupid reframing and I'll urge the moderators to change the title if they ever want to move it to the front page.

Under the new regulations, financial institutions operating under the regulatory purview of the CBN are now obligated to collect and verify customers’ social media handles as part of their KYC process.

Mynd44, nlpmod take note so you don't push out untruths and false reporting

FreeStuffsNG:
You are not calling out govt when you criminally defame and cyberbully others. You are actually breaking the law and it's the job of govt to enforce the laws. If you do it and get away today, tomorrow you will be the victim of another cyberbully and criminal defamer.

Critics are intelligent people courted even by govt because they use facts to influence public opinion. You can't move any needle by committing crimes online.

If you think you can styfle the voice of the masses, you will be shocked how hard you will fail. We must continue to call evil by its proper name no matter who's hurt.

This is stupid , half of Nigerian population do not even have smart phones so are you going to force them to own social media ? All Nigerians must reject this , if the banks will collapse let them collapse, the APC is taking their crimes against Nigeria too far

Obrigardo:
@FreeStuffsNG

I have seen your propaganda on this board and it's worrisome.
There is nowhere in the Article where it says it's mandatory.

There are people and mostly in rural areas who don't have and have no need for social handles or whatever nonsense you call it.

This is stupid reframing and I'll urge the moderators to change the title if they ever want to move it to the front page.



Mynd44, nlpmod take note so you don't push out untruths and false reporting

You sure you ham well so?

In an effort to enhance the accuracy and depth of customer identification, the CBN has made it mandatory for financial institutions to collect and verify customers’ social media handles as part of their Know Your Customer (KYC) requirements.

When una no dey mad 😡
Wat of people wey no get browsing phone..

Which kind corn tree be this, is like most black people have cellophane blocking the productive parts of their brain when it's time to be productive

Taich:
We have more than enough personal data to work with in Nigeria, duplication of data is what we love doing, all minus no plus. Birth certificate, NIN, Drivers Licence, International Passport, BVN, Phone Registration, Social media registration. All can be done with one data base but we behave as if we don't know all these.

Everyone is looking for ways to eat from the fat cake (complaining Nigerian tax)

obiekunie01:
some of us that are not on twitter, face, instagram or whatever so does that mean we cant have a bank account?

or do i present my Nairaland handle??

It is not compulsory.

If you don't have a social media account, you simply leave that part of the account opening form blank.

Just as not having an email address doesn't stop anyone from opening and maintaining an account.

I think home address is the only contact information that is compulsory. I am not even sure phone no is compulsory.

W

You can’t make such mandatory in any country. NIN is enough information.

FreeStuffsNG:
You are not calling out govt when you criminally defame and cyberbully others. You are actually breaking the law and it's the job of govt to enforce the laws. If you do it and get away today, tomorrow you will be the victim of another cyberbully and criminal defamer.

Critics are intelligent people courted even by govt because they use facts to influence public opinion. You can't move any needle by committing crimes online.

Dead on arrival

zoo of a country, mad people everywhere what happened to nin and Sim linkage

Oh the cbn governor is a mechanical engineer

Another failed policy from the animal people congress

DeLaRue:


It is not compulsory.

If you don't have a social media account, you simply leave that part of the account opening form blank.

Just as not having an email address doesn't stop anyone from opening and maintaining an account.

I think home address is the only contact information that is compulsory. I am not even sure phone no is compulsory.

thank you sir.

You started with NIN, till date many people who registered over 10 years ago have not seen or received their National ID. You have the details of the people but you don't have a proper record to unify all the information at your disposal but that alone you can't do. Is it everyone that is on social media?

oppression

Stop disturbing the masses abeg, wetin concern my old grandpa with his small button phone with social media profile? The real criminals are in the govt offices with you guys right there.