Nigeria’s Financial Watchdog Issues Guidelines on Know Your Customer (KYC) Regulations

Strengthening Anti-Money Laundering and Combating Terrorism Financing Regime

The Central Bank of Nigeria (CBN) has issued new guidelines on know your customer (KYC) regulations for banks and other financial institutions to strengthen the country’s anti-money laundering and combating the financing of terrorism (AML/CFT) regime.

Requirements Under the New Guidelines

• Banks and other financial institutions must conduct thorough due diligence on all customers, including individuals and businesses, before opening an account or providing any financial services.
• Financial institutions must maintain accurate records of their customers’ identification and verification processes, as well as update these records regularly to reflect any changes in customer information.

Ongoing Monitoring of Customer Transactions

• The CBN has directed banks and other financial institutions to conduct ongoing monitoring of their customers’ transactions and activities, with a view to detecting and reporting suspicious transactions to the relevant authorities.

Consequences of Non-Compliance

• Failure to comply with the new guidelines will attract severe penalties, including:
  • Fines
  • Account suspension
  • Reputational damage
  • Revocation of operating licenses

Supporting Financial Institutions in Compliance

Dojah, a leading provider of identity verification and fraud prevention solutions, is offering its KYC and transaction monitoring verification solutions to help financial institutions in Nigeria comply with the new guidelines. These solutions enable financial institutions to:

• Automate identity document checks
• Detect forgeries using artificial intelligence
• Monitor customer transactions continuously using red flag alerts and risk scoring

Benefits of Using Dojah’s Solutions

• Streamline KYC processes
• Reduce the risk of human error
• Ensure ongoing compliance with AML/CFT regulations