Central Bank of Nigeria Releases New Customer Due Diligence Regulations

The Central Bank of Nigeria (CBN) released its CBN Customer Due Diligence Regulations, 2023 for all Financial Institutions (FIs) under its regulatory purview, which aims to ensure that financial institutions comply with customer due diligence measures as required by Central Bank of Nigeria (CBN) AML/CFT/CPF Regultaions, 2022.

The regulations cover various aspects of CDD, including customer identification, verification, understanding sources of funds, and ongoing due diligence. Additionally, the regulations introduce electronic KYC and a risk-based approach to CDD.

According to the regulation, the CDD measures shall include: 

(a) customer identification and verification of identity; 

(b) identification and verification of identity of beneficial owners (BOs); 

(c) understanding nature and purpose of business; 

(d) understanding the sources of funds; and 

(e) conducting ongoing due diligence on the business relationship and monitoring for suspicious activities.

All banks and other financial institutions are directed to note for immediate compliance, according to the latest annoucement by CBN.