Lawmakers stop CBN from using social media to identify customers

July 11, 2023 6:55 PM

Is the CBN forcing social media identification on custoers? House of Reps demands answers.

The CBN said 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. [Unsplash]

The House of Representatives has called on the Central Bank of Nigeria (CBN) to suspend its directive that requires banks to include customers' social media handles as a means of identification.

Recommended articles

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.