From Uche Usim, Abuja
For better conflict resolution, the Central Bank of Nigeria (CBN) has ordered all registered financial institutions in Nigeria to boldly display their legal name on all their online business platforms.
The directive, contained in a circular, mandates all financial institutions under its purview, such as banks, other financial institutions, payment services providers, and international money transfer operators to display their corporate names on all their online business platforms, including websites, portals, and mobile apps.
The apex bank gave a deadline of January 31, 2024, for full compliance after which it would begin penalizing non-compliant financial institutions.
According to the circular signed by the CBN’s Director of Financial Policy and Regulation, Haruna Mustafa, the practice of not displaying the legal name on these online platforms has led to difficulty for some customers who sought redress when the need arose.
“The Central Bank of Nigeria has observed with concern that some licensed entities that operate transaction websites/portals or online applications do not conspicuously display their corporate names to facilitate recognition by the public. This practice portends risk to consumers of such products and services, including negative perception of the products or services, misleading consumers and difficulty to seek redress when the need arises.”
“In view of the above and to engender trust and confidence in the use of such products and services, all licensed financial institutions are hereby required to: Conspicuously display their corporate names on all their corporate names on all their websites, portals, and online applications.
“Include “Licensed by the Central Bank of Nigeria” beside or under their names.
“Accordingly, financial institutions are to ensure full compliance with the above directive not later than January 31, 2024, as failure to do so will attract appropriate sanctions.”
For clarity, if a financial institution or a mobile money operator registered its business name as Uche Hauwa Akin Limited and operates an online payment app called UHA; with the new rule, the company is mandated to display the legal name “Uche Hauwa Akin” on its mobile application, website, and other online business platforms it operates.
The company is also mandated to include “Licensed by the Central Bank of Nigeria” under or beside its corporate name for easier identification and smoother conflict resolution.