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 guidelines for banks and other financial institutions to implement a Three-tiered Know-Your-Customer (TKYC) policy aimed at attracting active poor individuals into the banking system. CBN conducted an assessment of the compliance with this policy and identified several areas where improvements are needed, particularly in publicity, awareness, officer training, and maintaining effective anti-money laundering/counter-terrorist financing (AML/CFT) solutions. As a result, banks and other financial institutions must now report quarterly on their TKYC policy implementation, provide documentation of their actions taken towards effective implementation, and maintain records for on-site compliance visits by the Bank Examiners.