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The Central Bank of Nigeria (CBN) has mandated financial institutions to collect and verify customers' social media handles during their Know Your Customer (KYC) process.
The apex bank on Friday made the announcement in a newly released regulatory memo sent to banks operating under the CBN regulatory framework.
This requirement which applies to both individuals and legal entities aims at strengthening customer identification, mitigating risks associated with financial crimes and combating financial crimes.
The inclusion of social media handles in KYC requirements allows financial institutions to gain deeper insights into customers' online presence and activities.
By accessing this additional information, institutions can better assess potential risks associated with money laundering, terrorism financing, and proliferation financing.
This proactive step by the CBN reflects its commitment to keeping up with technological advancements and evolving risks in the financial sector.
CBN by adopting this regulation aims to ensure that financial institutions have a comprehensive understanding of their customers, enabling enhanced due diligence and risk mitigation.
Individuals and businesses are reminded to be mindful of their online presence and activities in light of this development.
It is crucial for customers to ensure that the information shared on social media platforms aligns with their stated profiles and remains consistent with their financial transactions.
Financial institutions will handle this information responsibly and strictly adhere to data privacy and protection regulations.
Customers can trust that their social media data will be utilized for the sole purpose of enhancing risk assessment and preventing financial crimes.
With this regulatory update, the CBN reinforces its commitment to maintaining a secure and resilient financial ecosystem in Nigeria, safeguarding both customers and institutions from illicit activities
