The House of Representatives has urged the Central Bank of Nigeria CBN, to halt the implementation of the “Know Your Customer” (KYC) directive.

This was sequel to the adoption of a motion by a member from Rivers state Mr Kelechi Nwogu at plenary.

Mr Nwogu stated that the CBN has recently released its Customer Due Diligence Regulations, 2023, and it’s Know Your Customer directive to galvanize compliance with anti-money laundering and counter-terrorism financing provisions.

He said obtaining the additional information, would be useful to financial institutions in accessing customers’ online presence and activities,

“Cognizant of the fact that this directive by the CBN is inconflict 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 the fact that banks in the country already have the names, telephone numbers, passport photographs, emails, National Identification Number (NIN) and other basic requirements with which to identify and monitor customers”.

Mr Nwogu stated that there are better means of monitoring money laundering, and proliferation financing, such as the Nigeria Police Force, the Economic and Financial Crimes Commission (EFCC) as well as the intelligence and crime tracking agencies.

He expressed concern that if the directive takes effect, Nigerians who are not on social media, with large turn overs from their businesses and trades, would be systematically excluded from formal banking systems.

Adopting the motion, the house mandated the Committee on Banking and Currency (when constituted) to investigate the matter and report back within three weeks for further legislative action.

The house also mandated the Committee on Legislative Compliance (when constituted) to ensure implementation.

Reos investigates excessive bank charges
In related development the House of Representatives has mandated its Committee on Banking and Currency (when constituted) to investigate the issue of excess charges and illegal deductions by commercial banks in Nigeria.

This was sequel to a motion by a member from Cross River state Mr Godwin Offiono, at plenary.

The lawmaker stated that some Banks and Financial Institutions in Nigeria indulge in the unethical practice of fleecing their customers through excess charges and unauthorized deductions.

Mr Offiono observed that apart from Stamp Duty, bank customers also pay Value Added Tax (VAT) charges applicable on all VATable transactions on their accountAdopting the motion, the house mandated the committee on Legislative Compliance (when constituted) to ensure implementation