Business

CBN stopped from using social media to identify customers

Published by Tope Fakinlede on July 12th, 2023.

CBN stopped from using social media to identify customers

FCG reports that Lawmakers have stoppeed CBN from using social media to identify customers.

FCG learnt that the decision was made after a motion, sponsored by nine members, was put forward.

The CBN recently issued its Customer Due Diligence Regulations for 2023, highlighting that the inclusion of social media handles in the “Know Your Customer” process would enhance compliance with anti-money laundering and counter-terrorism financing measures.

However, concerns were raised by the House regarding the potential exclusion of Nigerians who do not use social media platforms and have significant business turnovers from the formal banking system.

The House expressed worry over the adverse impact this directive would have, particularly on illiterate or semi-literate individuals, business owners, traders, and entrepreneurs living in rural areas and villages who do not possess social media handles.

Furthermore, the House has announced plans to launch an investigation into allegations of excessive charges and unlawful deductions by commercial banks operating in Nigeria.