The Central Bank of Nigeria (CBN) has taken a firm stance against financial crimes by releasing its latest Customer Due Diligence Regulations for financial institutions under its regulatory purview. The move aims to strengthen compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) provisions while aligning with international best practices.

To enhance the accuracy and depth of customer identification, the CBN has introduced a new requirement for financial institutions to collect and verify customers’ social media handles as part of their Know Your Customer (KYC) process. These regulations, which complement existing provisions, aim to fortify the fight against money laundering, terrorism financing, and proliferation financing.

Financial institutions must establish internal processes and procedures for conducting customer due diligence measures, including the identification of individuals, legal entities, and politically exposed persons (PEPs). The regulations emphasize the use of reliable and independent source documents, data, or information to verify customer identities and validate official documentation.

Record-keeping is also a key focus, with financial institutions required to retain customer information, account files, and analysis results for a minimum of five years. Regular reviews of customer records based on risk categories are mandatory, ensuring that high-risk customers are reviewed annually, medium-risk customers every 18 months, and low-risk customers every three years.

In recognition of the growing influence of social media platforms, the CBN now mandates the collection and verification of customers’ social media handles. This additional information will provide valuable insights into customers’ online presence and activities, enabling financial institutions to better assess potential risks associated with financial crimes.

By including social media handles as a mandatory KYC requirement, the CBN acknowledges the significance of social media in individuals’ and businesses’ daily lives. Financial institutions will establish internal processes to accurately collect and verify customers’ social media handles, integrating this data with other KYC information to create comprehensive customer profiles.