Money laundering: CBN issues fresh directives

The Central Bank of Nigeria (CBN), has introduced new regulations that compel financial institutions to collect additional customer details, such as social media usernames, email addresses, phone numbers, and residential addresses.

This measure has been implemented to bolster the identification process within the banking system.

The CBN has outlined these requirements in a published document titled “Central Bank of Nigeria (Customer Due Diligence) Regulations, 2023, on Friday.

The CBN has stated that these regulations have been put in place to strengthen customer due diligence measures for financial institutions under its regulatory supervision.

The objective is to ensure adherence to the 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), as well as international best practices.

As part of the customer identification process, the CBN has specified that financial institutions must identify their customers, regardless of whether they are regular or occasional customers, individuals or legal entities, or legal arrangements.

For individuals, the required information includes their legal name and any aliases, permanent and residential addresses, phone numbers, email addresses, social media usernames, date and place of birth, Bank Verification Number, Tax Identification Number, nationality, occupation, any public positions held, and the name of their employer.

The CBN has also stated that individuals must present a valid, unexpired passport, national identification card, residence permit, social security records, or driver’s license as proof of identification.

Furthermore, financial institutions must collect information about the type of account, the nature of the banking relationship, the customer’s signature, and their politically exposed person status.