Social Media Handle: Reps Halt Implementation In KYC

The House of Representatives has urged the Central Bank of Nigeria CBN, to halt addition of the social media handle on the “Know Your Customer” directive.

This was sequel to the adoption of a motion by a member from Rivers state, Mr Kinsley Chinda at plenary.

Presenting his motion titled
”Need to Halt the Central Bank of Nigeria’s Directives on Addition of Social Media Handle on
“Know your Customer” Requirement:””
Mr Chinda stated that the CBN has recently released its Customer Due Diligence Regulations, 2023, and its Know Your Customer directive to galvanize compliance with anti-money laundering and counter-terrorism financing provisions.

He said obtaining the additional information, would be useful to financial institutions in accessing customers’ online presence and activities, thus enabling better assessment of potential risks associated with money laundering, terrorism financing and proliferation financingg.

The lawmaker however, observed that as laudable as the directive may appear, it may be unnecessary as it is likely to bear pressure on teeming Nigerian masses at this trying period.

“Cognizant of the fact that this directive by the CBN is in conflict with the provision of Section 37 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) on the right to privacy of Citizens.

“Also cognizant of the fact that banks in the country already have the names, telephone numbers, passport
photographs, emails, National Identification Number (NIN), Biometric Verification Number (BVN), utility bills and other basic requirements with which to identify, know and monitor customers.

Mr Chinda stated that there are better means of monitoring money laundering, terrorism financing, and
proliferation financing, such as the Nigeria Police Force , Nigeria Financial Intelligence Unit, the Economic and Financial Crimes Commission (EFCC) as well as the intelligence and crime tracking agencies, amongst others.

He expressed concern that if the directive takes effect, Nigerians who are not on social media, with large turn overs from their businesses and trades, would be compelled to or systematically be excluded from formal banking systems with its attendant negative effects and implications.

The lawmaker, who is the Minority leader of the house, added that the directive would also cause untold hardship to millions of Nigerians, especially illiterates, or semi-iliterate business owners, traders and entrepreneurs living in villages and rural areas, who do not have social media handles.

Adopting the motion, the house mandated the Committee on Banking and Currency (when constituted) to investigate the matter and report back within three weeks for further legislative action.

The house also mandated the Committee on Legislative Compliance (when constituted) to ensure implementation.

Oduyemi Odumade, Edited By Grace Namiji