The Central Bank of Nigeria (CBN) says henceforth, commercial banks must obtain social media handles and digital identification of customers as a mandatory Know Your Customer (KYC) policy in the financial services sector.
The new directive according to the CBN is targeted at strengthening the fight against financial crimes as contained in the CBN’s Customer Due Diligence Regulations 2023 report, which was posted on its website and addressed to all banks and other financial institutions.
The regulation, signed by the CBN Director, Financial Policy and Regulations Department, Chibuzo Efobi, was aimed at bolstering compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) provisions while aligning with international best practices.
Under the Social Media Handles Under Section 6 (IV) of the new regulation, 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 and seeks to enhance the accuracy and depth of customer identification.
Under the regulation, 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.
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
