The term know your customer is used to extract basic and sensitive information about customers especially their source of income, it may also be used for other non-banking sector but this article is for the purpose of KYC as it relates to banking.
Banks in Nigeria are mandated by Central Bank of Nigeria (CBN) to have some level of information about their customers and nature of their business, with its circular dated 18th January 2013, the CBN mandated a three tier level of KYC for all banks accounts in Nigeria.
Consequently, all bank accounts operating in Nigeria falls under tier one, tier two and tier three. This policy is very sensitive for checking fraud, money laundry and financial crimes. In the event of a financial crime, these information will be required by the Economic and Financial Crime Commission (EFCC) to track and prosecute offenders.
This is why Nigerian banks strictly require a complete documentation from customers in order to adhere to the policy and also protect themselves and customers from legal issues.
The attached is the full circular from CBN on its policy for a three tier KYC.
[embeddoc url=”http://www.financialwatchngr.com/wp-content/uploads/2015/11/CBN-CIRCULAR-ON-KYC.docx” viewer=”microsoft”]
CHECK OUT THESE INTERESTING STORIES:
- Account opening requirements for tier three kyc
- Nigerian bank employee grades and levels
- Why Nigeria experienced N290bn trade deficit in 2016 – NESG
- NLC raises alarm on sufferings of Pensioners in Nigeria
- Food price in Nigeria to drop by June 2017- Report
- FirstBank provides Secure money transfer services to customers
- CBN mandates banks to pay dollar across the counter to desiring customers
- Ghana Central Bank Governor Resigns
- CBN sells forex to BDCs at N360/$
- Zenith bank abandons plans to raise $318 m due to weak economy