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Bank customers are
apprehensive about the deadline for update of customers’ data, which
expired on December 31, 2010. The Central Bank of Nigeria (CBN)
recently directed banks to carry out an update on customer profile in
furtherance of its know-your-customer requirement. According to the
directive, customers that fail to comply will no longer have access to
their bank accounts.

A visit to some
banks in Lagos last week saw a lot of customers rushing to beat the
deadline. While many customers complained about the poor enlightenment
by the banks and the CBN, others called for an extension of the
deadline to enable more people comply with the directive. They
complained about the failure of the banks to notify them on time.

Poor enlightenment

A bank customer,
Ibrahim Buba, in Kaduna expressed disgust at the manner the regulator
was going about it. “How can they just expect us to comply within this
period? I only just got to know about it two weeks ago and I did not
take it serious thinking it was one of these scam notices,” Mr Buba
said.

He said he was surprised to get to his bank on Thursday only to see a huge crowd of customers who wanted to update their data.

“There ought to be
enlightenment campaign by the CBN to sensitise people on the need to do
this. In any case, what is the need for the rush? This thing ought to
be stretched over a long period instead of this current exercise that
is causing a lot of inconveniences to people.”

Another customer,
who declined to give his name, said he has no new information to supply
as previous data was still relevant. “But I went to my bank and they
told me I need to bring my drivers’ license, international passport or
utility bill and a new passport photograph,” he said.

First Bank had on
December 24 2010 sent email messages to customers informing them of the
CBN directive. “The Central Bank of Nigeria (CBN) recently directed all
Banks to have their entire customer’s data updated before December 31,
2010. In line with this, please visit any FirstBank branch nearest to
you, collect an update form, fill and submit to the Customer Service
Officer,” the message read. The bank advised customers to attach a
recent passport photograph and a photocopy of identification (National
ID, Driver’s license or International Passport to the form).

When this reporter
visited the Abibu Oki branch of First Bank on Thursday afternoon, a
number of already submitted forms were cited while others made effort
to complete theirs. A staff of the branch who did not want to be named
said so far, the response has been poor as not many customers are aware
of the directive.

“Even as a banker,
I only just updated my data with my bank today. The Central Bank may
have to extend this deadline to enable more people comply,” he said.

Compliance has been high

Efforts to speak to
Mohammed Abdullahi, the CBN spokesperson was not successful but a CBN
official who did not want his name mentioned because he was not
authorised to speak on the matter, said compliance has been high. “A
lot of people have been complying with the KYC (know-your-customer)
directive, from initial reports we have been receiving.”

He, however, said
the CBN is yet to take a decision on whether it will extend the
deadline. “We have not taken a decision yet on whether we will extend
the deadline. Until we get the full compliance report from all the
financial institutions, then we will decide whether to extend or not.”
According to him, the central bank has conducted a lot of enlightenment
campaigns to sensitise Nigerians on the exercise. “Campaigns have been
going on especially among the interagency on money laundering
comprising the EFCC (Economic and financial Crimes commission), United
Nations office on Drugs and Crimes and the CBN.

The Central Bank in October 2009 released a revised manual on anti-money laundering/Counter Terrorism Financing.”

According to the regulator, there are doubts about the veracity or
adequacy of previously obtained customer identification data, hence the
need for bank customers’ data update.