Banks must now obtain social media handle of customers, both personal and corporate account holders

As part of a mandated Know Your Customer (KYC) policy in the financial services industry, the Central Bank of Nigeria (CBN) has ordered commercial banks to gather social media handles and digital identification of clients going forward.

The CBN’s Customer Due Diligence Regulations 2023 report, which was published on its website and addressed to all banks and other financial institutions, states that the new directive is intended to boost the battle against financial crimes.

The regulation was intended to strengthen compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations while adhering to global best practices. It was signed by Chibuzo Efobi, Director of the CBN’s Financial Policy and Regulations Department.

The Social Media Handles section Financial institutions operating under the CBN’s regulatory authority are now required to collect and verify their customers’ social media handles as part of their KYC procedure, under Section 6 (IV) of the new rule.

This criterion is intended to improve the precision and breadth of customer identification and is applicable to both natural persons and legal entities.

Financial institutions are required by law to keep track of client due diligence information, account files, business correspondence, and analysis findings for a minimum of five years following the end or cessation of a business relationship or occasional transaction.

The directive is contained in a circular dated June 20, 2023, signed by Chibuzo Efobi and gazetted in the Federal Republic of Nigeria Official Gazette. You can donwload the directive here