CBN extends deadline for KYC requirements for businesses, professions

The Central Bank of Nigeria (CBN) has extended the deadline by eight months to all banks and other financial institutions on the Know Your Customer (KYC) requirement after the expiration of April 30, 2013 deadline.

This, according to the CBN, is in consideration of some challenges encountered by the Special Control Unit on Money Laundering (SCUML) as a result of number of persons seeking to enjoy late compliance.

Consequently, Designated Non-Financial Businesses and Professions (DNFBPs) that are customers of financial institutions, who have not registered with SCUML may take advantage of the further extension to do so and update their bank accounts information with the required evidence of registration on or before December 31, 2013, failing, which they would not be allowed to operate such accounts, the CBN said in a circular to banks and other financial institutions.

The circular signed by Ikem A.C, acting director, financial policy and regulation department, noted that compliance with the directive is in line with international best practice against adverse developments resulting from money laundering and financing of terrorism in the world financial architecture.

The CBN had in a circular dated August 2, 2012 directed DNFBPs that are existing financial institutions’ customers to update their accounts information with evidence of registration (for example certificate of registration showing registration number) with the SCUML within six months from the date of the circular.

Following the expiration of the initial deadline and representations made by stakeholders, the CBN vide its circular dated February 25, 2013, extended the deadline by three months from February 1 to April 30, 2013.