KYC POLICY: CBN INTRODUCES UNIFORM ACCOUNT OPENING FORMS FOR BANKS

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By oriade Ayomide

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In a bid to ensure an effective Know-Your-Customers’ (KYC) policy in the financial institutions in the country, the Central Bank of Nigeria has introduced a uniform account opening form for bank customers nationwide. This will enable banks to have needed background information about their customers.

The move was contained in a circular titled “Uniform Account Opening Forms and Minimum Information Requirement for Three-tiered KYC for Customers of Banks and Other Financial Institutions in Nigeria,” addressed to all banks and other financial institutions.

According to the CBN, the uniformity in account opening forms is to ensure that Customer Due Diligence (CDD) is consistently and uniformly practiced in account opening process for prospective customers of financial institutions.

The circular signed by the Director, Financial Policy and Regulation Department, Kevin N. Amugo, explained that: “Individual prospective customers are required to complete account opening Form A(1), Form A(2) and Form A for accounts in tier one, two and three respectively, while legal entities are to complete Form B.

“Whereas prospective customers are required to provide the relevant information applicable to them as prescribed, existing customers are to regularly update their records in line with the formats.”

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