*The Bankers鈥� Bank says the revised regulatory framework is to enhance the effectiveness of customer due diligence and Know Your Customer (KYC) processes as part of the Central Bank of Nigeria鈥檚 overall strategy for promoting a safe and efficient banking and payments system

Isola Moses | 绿帽献妻

The Central Bank of Nigeria (CBN) has said it is activating a new regulatory instrument to enhance the effectiveness of customer due diligence and Know Your Customer (KYC) processes for promoting a safe and efficient banking and payments system in the country.

Accordingly, the Bank has disclosed that consumers of financial products and services under its watchlist may be barred from entering a new relationship with any participant (banks) and accessing loans.

绿帽献妻 reports the CBN stated hinted at this development in its Revised Regulatory Framework for Bank Verification Number (BVN) operations and Watchlist for the Nigerian Banking Industry.

In the document signed by Mr. Musa Jimoh, Director of Payments System Management Department at CBN, the apex bank explained the framework is to enhance the effectiveness of customer due diligence and Know Your Customer (KYC) processes.

It is part of the Bankers鈥� Bank overall strategy for promoting a safe and efficient banking and payments system, said Jimoh.

The apex bank also noted that consumers who misuse identity and financial information, indulge in identity theft, and breach of confidentiality will be punished in line with the new regulations.

Besides, the Bank鈥檚 Director of Payments System Management said if a financial institution chooses to continue an existing business relationship with holders of accounts/wallets on the watchlist, the account holders will be prohibited from using all electronic channels.

These, the Bank noted, include Automated Teller Machine (ATM), Point of Sale (POS) terminal, Internet Banking, Mobile Banking, and USSD as well as the issuance of new cards.

The CBN further stated in the revised framework, that a customer with watch-listed BVN shall not reference accounts, access or guarantee credit facilities, and thus, breaches continued on the customer鈥檚 part include the use of forged documents, forgery, compromise, complicity and connivance.

Jimoh also said duplicate enrolment, use of fictitious information, reception of proceeds of deceit, deception, receipts of fraudulent funds, and any other infringement of AML/CFT legislation, including dishonest behaviour are all serious offences in the fresh regulation.

The CBN, therefore, assured Nigerians that it would continue to monitor the banking industry developments and issue further guidance as might be appropriate in the nearest future.