CBN Moves To Protect Banks Customers, Gives Fresh Order To Access, GTB, Zenith, UBA, Others
- The CBN has issued new directives to commercial banks and other financial institutions
- The latest directive emphasises the need for these financial institutions to clearly display their names online
- This move is aimed to assist customers in easily identifying the brands, and customers falling victim to fraud
Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
The Central Bank of Nigeria (CBN) has instructed Nigerian financial institutions to display their corporate names on all their online business platforms which includes websites, portals, and mobile apps.
The directive affects banks, payment services providers, and international money transfer operators.
Source: Facebook
The CBN gave the directive in a circular signed by Haruna Mustafa, the CBN’s director of financial policy and regulation.
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The circular noted that the practice of not displaying the legal name on these online platforms has led to difficulty for some customers in need of assistance.
Financial institutions have January 31, 2024 to comply or risk facing sanction.
The circular reads:
“The Central Bank of Nigeria has observed with concern that some licensed entities that operate transaction websites/portals or online applications do not conspicuously display their corporate names to facilitate recognition by the public.
This practice portends risk to consumers of such products and services, including negative perception of the products or services, misleading consumers and difficulty to seek redress when the need arises.”
The CBN also stressed that the directive will help engender trust and confidence in the use of such products and services.
Here is a breakdown of what financial institutions must do.
- Conspicuously display their corporate names on all their corporate names on all their websites, portals, and online applications.
- Include “Licensed by the Central Bank of Nigeria” beside or under their names.
CBN added:
“Accordingly, financial institutions are to ensure full compliance with the above directive not later than January 31, 2024, as failure to do so will attract appropriate sanctions.”
CBN Orders Access, Zenith, other banks to demand social media handles of customers, 9 other information
Legit.ng also reports that the CBN has asked all financial institutions, including commercial banks, to collect and verify customers' social media handles as part of their Know Your Customer (KYC) requirements.
The new directive applies to both individuals' and legal entities' customers as captured in CBN's Customer Due Diligence Regulations for 2023, obtained by Legit.ng.
The CBN hopes that the social media handles will enhance financial institutions' accuracy and depth of customer identification.
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Source: Legit.ng
