CBN gives fresh orders to Access, Zenith, others on KYC requirements for NGOs, others

The Central Bank of Nigeria has issued fresh Know Your Customer (KYC) requirements to commercial banks in Nigeria.

The bank said that the latest order regards account opening in banks and other financial institutions for non-governmental organizations in the country.

New order aligns with CBN laws

In a circular dated December 8, 2023, and titled ‘Additional Know Your Customer (KYC) Requirement in Respect of Non-Profit Organisations (NGOs), the bank said the financial institutions are required to obtain from the NGOs evidence of registration with Special Control Unit Against Money Laundering (SCUML) of the Economic and Financial Crimes Commission (EFCC).

CBN said the banks must obtain the relevant SCUML information from the ant-graft agency before establishing a relationship with the NGOs. It said the new requirement aligns with the laws and regulations and its circular dated August 2, 2012. CBN said.

“Consequently, all banks and other financial institutions are hereby required to ensure strict compliance with the above requirement and update all customer account information accordingly.”

CBN orders banks to go after loan defaulters

The development comes after CBN suspended applications for new loans under its development finance intervention funds.

The apex bank said banks are now responsible for recovering loans granted under various schemes.

The bank announced this via a circular to bank Chief executives signed by the Acting Director of the Development Finance Department, Sa’ad Hamidu.

The bank stated it had commenced a pullback from direct development financing interventions. Legit.ng reported that CBN said the banks are now responsible for loan recoveries granted under development finance intervention funds.