• Say policy politically motivated to gag people from expressing themselves
From Uche Usim, (Abuja) and Adewale Sanyaolu
Finance experts and bank depositors have challenged the decision by the Central Bank of Nigeria (CBN) to include social media handles of customers on the list of mandatory Know-Your-Customer (KYC) requirements.
The apex bank, upon release of its Customer Due Diligence Regulations 2023 at the weekend, said the new development will galvanise compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) provisions, which is consistent with global best practices.
It noted that by obtaining the additional information, financial institutions can gain valuable insights into customers’ online presence and activities, enabling better assessment of potential risks associated with money laundering, terrorism financing, and proliferation financing.
But reacting to the new rule, the Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), and prime bank customer, Dr Muda Yusuf, described it as a completely unnecessary obstacle placed on the path to achieving higher numbers in financial inclusion.
“The banks already have the National Identification Number (NIN), Biometric Verification Number (BVN) Utility bills and other basic information to identify and monitor customers with. If you want more information and surveillance on any customer, you have the Nigerian Financial Intelligence Unit (NFIU). You use intelligence to track crimes.
For instance, there is a rule that any account balance or deposit or withdrawal above a certain threshold should be reported. You can involve the NFIU on that.
“Otherwise, what will you do with those in the informal sector? We have over 30-40 million people we are trying to bring into the financial net. Many of them have no social media handles. These are old and aging traders and entrepreneurs.
“Many traders with large turnovers are not on social media, so are you going to exclude them from formal banking system?
“If you want to fight terror and other forms of criminality, do thorough intelligence gathering and analysis.
“We need the regulator to do more rigorous thinking and not this approach in fighting terrorism and other crimes.
“Some people may manage to open social media accounts but won’t be active there. They could even create and submit fake accounts and that doesn’t mean they are clean. It’s just to fulfill all righteousness. How does that help?
“Banks are already losing customers to small Fintech companies who do not subject customers to these stressful requirements and it’s not good. “We need to perish this idea because I’m worried about its capability of eclipsing many people in the informal sector from being financially included”, he said.
A bank customer who is also a pharmacist by profession, Mr. Tunji Adewumi, said
“I don’t see anything wrong in that. In any case, any Social Media handle can be traced,”
A power engineer and Chief Executive Officer of Tripod Industrial Services Limited, Ademola Raheem, said “I think this is going too far!
What has my social handle got to do with bank’s KYC?
I strongly believe this is a politically motivated policy to gag people from expressing themselves freely in a so-called free society. DSS on my mind. I think all bank customers should resist this.
I remember I refused to include my religion on a form to retrieve a lost SIM card a few years back and the lady in charge was furious.
So I just wrote X in the section,”.
A bank customer who is also a legal practitioner, Mr. Osemota Okosun, the directive by CBN is not a legal requirement for customers to have social media handles and it is their right to have or not have as well as their choice to decide to share or not to share.
“This aspect of the directive is in contravention of the constitution of the Federal Republic of Nigeria.
While we have nothing against enhanced due diligence, it is my right to have or not to have a social Media handle as well as my right to share or not to share.
I have accounts in foreign jurisdiction and these are not modern banking requirements,” he said.
Meanwhile, some bank customers on Twitter described the new rule as unnecessary and comedic.
@UnkleAyo tweeted: “Issuing this decree barely two weeks after the data protection bill was approved makes it more comedic.
This is blatant censorship. You tweet against the government? N2,000 naira.
“Anyways, the mandatory social media data collection policy will favor me and my family”.
@Techy_Lawyer said the move is a good one.
“It is an AML policy. Twitter has become a place for people to air dirty laundry about other people.
It is a good way to check for adverse media about an individual. Will it be used for the right purpose? The jury isn’t out yet”.
@Diji_O said: “I think they’re finding a way to collect tax from skit makers. Interesting”.
@Senunwah stated: “This requirement seems pointless, how does this help the bank offer me better financial services?” Many believe the new rule cannot get 100 per cent enforcement because not everyone is on social media and many are not willing to sign up for it.