By Stanley Opara

Wednesday, 5 Jan 2011

Following the Central Bank of Nigeria‘s directive that account owners should update information about their accounts with their banks before January 31, 2010, bankers have urged account owners to comply.

Some bankers who spoke to our correspondent on Tuesday, said it was better for account owners to reach their banks now, to avoid rushing towards the end of the exercise.

A banker with Union Bank Plc, who spoke to our correspondent under the condition of anonymity because he was not authorised to make comments on the matter, said response by customers had been encouraging, as many account owners were approaching the bank to make enquiries in that regard.

He said the bank was giving out forms to customers, and the forms were to be returned to the bank after the required details had been provided by the customers.

He advised account owners to visit the branches where their accounts were opened, but added that most branches would also not hesitate to process the forms, if that was the bank‘s internal arrangement.

Another banker with First Bank Plc, who spoke under condition of anonymity, said the process was intended to uphold the ‘Know Your Customer‘ axiom.’

According to him, some changes that may have occurred in people‘s data over time, made the exercise necessary, adding that the process would be ongoing, considering the fact that people‘s data would continue to change.

He admitted that most banks did not have the true information of their customers because some account owners could have changed their names, addresses, phone numbers, marital status, e-mail address, jobs and next of kin, among other data.

Another banker with United Bank for Africa at the Ikeja axis of Lagos state, told our correspondent that the CBN and Deposit Money Banks needed to do more in terms of public awareness. He said for the deadline to be sacrosanct, the information should be brought to people‘s doorstep.

The CBN had on November 29, 2010, directed that all customers of banks and financial institutions in Nigeria should update their account information by December 31, 2010, failing which the affected accounts would be suspended with effect from January 1, 2011.

Having reviewed the progress made so far and the response of the banking public, the CBN, this week, extended the deadline from December 31, 2010 to January 31, 2011.

CBN, therefore, directed all financial institutions to ensure compliance with the revised deadline and suspend operations of all accounts with un-updated information with effect from February 1, 2011.

According to the CBN, the account update is part of the Customer Due Diligence, which involves ‘Know Your Customer‘ compliance, which is accepted worldwide as a tool for the fight against money laundering and terrorism financing, as well as protecting the interest of customers.

All banks are required to ensure compliance, the CBN stressed.

 

Source: Punch