Regulatory Alerts2013-01-18 | FPD/DIR/CIR/GEN/02/001Circular to all Banks and Other Financial Institutions on Three Tiered KYC
The Central Bank of Nigeria (CBN) has proposed a tiered Know Your Customer (KYC) requirements regime for financial institutions to enhance customer due diligence (CDD), combat money laundering, terrorism financing, and promote financial inclusion. This risk-based approach involves three levels: low, medium, and high-value accounts. The new regime aims to make account opening and operation more attractive and appealing to the masses by simplifying requirements, reducing administrative costs for banks, and ensuring that financial institutions implement robust AML/CFT solutions with screening tools. Non-compliant financial institutions will be subject to sanctions in accordance with existing laws and regulations. This tiered KYC approach promotes a more streamlined and effective CDD process that is essential for maintaining a secure and transparent financial system.