"N200k to N10m": CBN to Sanction Access, Zenith, Other Banks Over Customers' Social Media Info
- The CBN has issued a warning of sanctions against financial institutions, including Access, UBA, and Zenith Bank, on customer information
- Financial institutions are now expected to have proper documentation of customers' social media handles, among other information
- The objective is to strengthen CBN's fight against money laundering, terrorism financing and proliferation financing
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The Central Bank of Nigeria (CBN) is set to sanction financial institutions, including commercial banks, for failure to obtain the necessary information on their customers
Legit.ng had earlier reported that the CBN asked financial institutions to demand customers' social media handles, among several other information, as part of the Know Your Customer (KYC) requirements.
Source: Getty Images
Banks are also expected to do an onsite verification of the permanent addresses of customers as filled in their KYC forms.
The move, CBN hopes, will help will enhance its fight against money laundering, terrorism financing, and proliferation financing, Punch reports.
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CBN sanctions on KYC
To ensure compliance with the regulation, the apex bank provided a list of sanctions for defaulting financial institutions.
The sanctions, which are divided based on the nature of infractions and the type of financial institutions, start from N200,000 to N10 million and are directed to the managing director (MD), executive compliance officer (ECO), chief compliance officer (CCO) and the bank.
Breakdown of CBN sanctions
One of the infractions is for failure to undertake Customer Due Diligence (CDD). CBN said for this infraction, it will make the non-compliant bank's ECO pay a minimum penalty of N750,000.
Also, a N500,000 fine will be paid by the DMBs CCO on other culpable employees.
There is also a minimum penalty of N200,000 per customer without CDD.
The CBN's document reads further:
"Payment Service Bank(PSP) failure to get customer details the penalty for the CCO will be N250,000 and N200,000 on other culpable employees. While A minimum penalty of N100,000 per customer will b paid.
"For Other financial instiutions: the CCO gets N100,000 –Bureau De Change N100,000 – Micro Finance Banks ,N200,000 - Finance Companies, N500,000 - Primary Mortgage Bank, N500,000 - Development Finance Institutions.
Also, the apex bank set N10 million fine for DMBs when they fail to keep and ensure customers' records are up to date.
For more details on the sanctions and bank requirements, check here.
CBN issues 4 new directives to Access, Zenith, GTB on domiciliary bank accounts
Meanwhile, in another report, the CBN has released six new directives on how domiciliary bank accounts should operate in the country
The move is aimed at promoting transparency, discouraging speculation, and ensuring overall stability in the forex market
Access, Zenith, and Guaranty Trust among several other commercial banks are expected to make make the necessary adjustments
Source: Legit.ng
