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Banks Will Now Need Your Social Media Handle For You To Operate An Account – CBN
Your social media handle is now a mandatory KYC Requirement for bank customers, according to the Central Bank of Nigeria (CBN).
The CBN has made it mandatory for financial institutions to collect and verify customers’ social media handles as part of their Know Your Customer (KYC) requirements.
The CBN, in its recently published Customer Due Diligence Regulations 2023 for financial institutions, made this known.
With this action, the CBN hopes to fortify the fight against money laundering, terrorism financing, and proliferation financing.
Under the new regulations, financial institutions are required to establish internal processes and procedures for conducting customer due diligence measures for both potential and existing customers, including occasional customers.
The required information for individuals includes legal name and any other names used, permanent address, residential address, telephone number, email address, social media handle, date and place of birth, Bank Verification Number, Tax Identification Number, nationality, occupation, public position held, and name of employer.
To verify customer identities, financial institutions must rely on reliable and independent source documents, data, or information.
The CBN also stated that individuals must provide an unexpired passport, national identification card, residence permit, social security records, or driver’s license as proof of identification.
The CBN’s decision to make social media handles a necessary part of the KYC process acknowledges the rising importance and pervasiveness of these platforms in both people’s personal and professional lives.
It recognizes that social media can reveal important details about a customer’s professional connections, affiliations, and possible revenue streams.
Financial institutions will need to set up internal systems and controls to gather and reliably authenticate customer social media handles.
To build a complete profile of the consumer, this information will be combined with additional KYC data, including legal names, residences, contact information, and identity documents.
This new requirement serves as a reminder for people and companies to be careful with their internet presence and actions.
Customers should make sure that the information they provide on social media platforms is compatible with their financial transactions and matches their stated profiles.
Financial institutions will use this information sensibly and strictly abide with the rules governing data protection and privacy.
