The House of Representatives has urged the Central Bank of Nigeria,(CBN) to stop the application of the “Know Your Customer” KYC injunction.
This was prior to the adoption of an act by one of thier members from Rivers state being Mr Kelechi Nwogu.
Mr Nwogu illustrated the fact that the Central Bank of Nigeria recently released Customer based Diligence Regulations, 2023, and it’s "know your customer" decree to invigorate conformity with anti-money laundering and counter-terrorism financing provisions.
The member of the House of Representatives however, observed that as commendable as the decree may appear, it would be irrelevant as it is likely to mount pressure on the breeming Nigerian populace at this difficult period.
He said acquiring additional information, would be profitable to financial institutions in accessing customers’ online presence and activities, thereby ensuring better judgement of potential risks associated with money laundering, funding terrorism and proliferation financing.
“Conscious of the fact that this act by the Central Bank of Nigeria is in contrary 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 apprehensive of the fact that banks in the country already have the personal information of customers such as thier 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 Nwogu also stated that there are better means of countering money laundering, funding terrorism, 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 many others.
He expressed concern that if the decree takes effect, Nigerians who are not on social media, with large turn overs from their businesses and trades, would be forced to or systematically excluded from formal banking systems with its attendant negative effects and consequences.
The lawmaker, added that the decree would also cause untold suffering to millions of Nigerian citizens, especially the illiterates, or semiliterate business owners, traders and entrepreneurs living in the rural areas, who do not have access social media.
Employing the act, the house authorized the Committee on Banking and Currency (when they are finally enacted into law) to look into the matter and
Give feedback within three weeks for further legislative action.
The house of representatives also assigned the Committee on Legislative Compliance (when enacted) to ensure
application.
Odo samuel.
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