Regulatory Alerts2014-07-14 | FPR/DIR/BOF/GEN/04/011Report on the Three-Tiered Know Your Customer (TKYC) Compliance Exercise
The Central Bank of Nigeria (CBN) has issued a letter to all banks and other financial institutions regarding the implementation of their Three-tiered Know-Your-Customer (TKYC) policy. The policy aims to bring the active poor into the banking system, but the initial on-the-spot-check revealed some areas for improvement in ensuring its effective implementation. The institutions are required to intensify publicity and awareness of the TKYC policy, conduct training sessions, deploy efficient AML/CFT solutions, and submit quarterly reports using an attached format. All stakeholders must ensure that they maintain records of actions taken to improve implementation for on-site visits by Bank Examiners.
09-46237401 ial Policy & Regulation Department IK OF NIGERIA 8th July, 2014 REF : 8889811980F/GEN/04/011 LETTER TO ALL BANKS AND OTHER FINANCIAL INSTITUTIONS ATTENTION: Chief Compliance Officer REPORT ON THE THREE-TIERED KNOW YOUR CUSTOMER (TKYC) COMPLIANCE EXERCISE The CBN, in its letter referenced FPR/DIR/GEN/ADM/01/001 of 25th February, 2013 issued guidelines to all banks and other financial institutions (OFIs) on the implementation of the Three-tiered Know-Your-Customer (TKYC) policy. Following the directive, Bank Examiners conducted on-the-spot-check at selected branches of banks and OFIs in locations spread across the country to assess the level of compliance with the requirements on tiers 1 and 2 and its spread. The exercise was also to ensure that the policy (to attract the active poor into the banking system to enable them enjoy its benefits) does not suffer a reversal due to ineffective and lack of diligent implementation by the stakeholders.
The report of the exercise has revealed the need for all stakeholders to take further steps to ensure that the objectives of the policy are achieved. To this end, all banks and OFIs are required to address the following: Intensify publicity and awareness on the TKYC policy in all locations of their business including rural areas; Conduct training for their officers on the implementation of the policy; Deploy and maintain effective AML/CFT solution that ensures operation of accounts within the prescribed thresholds; ili.
Carry out other measures that will enhance the effective implementation of the policy in the country; r ii.
iv.
Maintain documentary evidence of actions taken to ensure effective implementation of the policy in their institutions for Bank Examiners on on-site compliance visit to the institution; and vi...
Commence quarterly rendition of returns on the TKYC policy using the attached reporting format.
KEVIN N. AMUGO DIRECTOR, FINANCIAL POLICY AND REGULATION DEPARTMENT v.
EPORTING FORMAT FOR QUARTERLY RETURNS ON THREE TIEREL AME OF REPORTING ENTITY EPORT REFERENCE NUMB RIOD COVERED ATE OF REPORT
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