CBN extends Know-Your-Customer requirement deadline

Central Bank of Nigeria

This is the second extension of the deadline.

The Central Bank of Nigeria, CBN, on Tuesday, extended the deadline for the additional know your customer, KYC, requirement for Designated Non-Financial Businesses & Professions, DNFBPs.

According to CBN, the requirement, an evidence of registration ( a certificate of registration showing the organisation’s registration number) with the Special Control Unit of Money Laundering, SCUML, of Federal Ministry of Trades and investments, is to avert adverse developments resulting from money laundering and financing of terrorism.

In a circular made available on its website, the regulatory body said it would be extending the deadline for this cross-section of bank customers to update their additional KYC requirement by eight months. Hence, these customers are to update all KYC requirements by December 2013.

This is the second extension of the deadline by the regulatory body. In August 2012, the Central Bank issued the first directive, giving the banks six months to “obtain evidence of registration (e.g. Certificate of registration showing registration number) with the Special Control Unit of Money Laundering (SCUML) of Federal Ministry of Trades and investments.”

Following the expiration of the initial deadline and representations made by some stakeholders, the Central Bank in February extended the deadline by three months, from February 01 to April 30. The deadline was later extended to April 30.

The organisations in question

According to the Central Bank, Designated Non-Financial Businesses & Professions are “dealers in Jewellery, precious metals and stones, cars and luxury goods, audit firms, tax consultants, clearing and settlement companies, lawyers, notaries, other independent legal practitioners and chartered accountants, trust and company service providers (who provide services to third parties) hotels, casinos (including internet and ship-based casinos), supermarkets, real estate agents, non-governmental organisations, religious and charitable organisations or such other businesses and professions as the Federal Ministry of Trades and Investments or appropriate regulatory authorities may from time to time, designate.”

The Central Bank said the “above designated non-financial businesses and professions customers include sole practitioners, partners and employed professionals within professional firms. They do not refer to internal professionals that are employees of other types of businesses working for government agencies who may already be subject to AML/CFT measures.”

The Central Bank said this second extension was necessitated due to challenges encountered by Special Control Unit of Money Laundering (SCUML) of Federal Ministry of Trades and investments, the department to register this cross-section of businesses.

“In consideration of some challenges encountered by SCUML as a result of the number of persons seeking to enjoy late compliance, the Central Bank has decided to further extend the second deadline of 30 April by eight months to 31st December 2013. Consequently, DNFBPs who have not registered with SCUML may take the advantage of this further extension to do so and update their bank accounts information with the required evidence of registration on or before 31st December, 2013, failing which they would not be allowed to operate such accounts.

“It should be noted that the compliance with this 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 regulatory body said.

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