By InvestAdvocate

Lagos (INVESTADVOCATE)-The Central Bank of Nigeria (CBN) Thursday said the Know-Your-Customer (KYC) processes in Nigerian Deposit Money Banks, Microfinance Banks and Primary Mortgage Banks would use the National Identity Number (NIN) to be issued September 2012 for the KYC verifications financial transactions to commence January 08 2013.

This was contained in a Circular by Nigeria’s Central Bank dated May 28 2012 and obtained by www.investadvocateng.com.

The KYC will enable Nigerian Banks to know their customers and financial transactions.

According to the CBN, a new NIN to be issued from September 2012 by the National Identity Management Commission in conjunction with its Front End Partners; would be the new basis for KYC for financial transactions going forward

Paragraph three (3) of the circular reads thus” As part of the CBN’s efforts to bolster the banking industry and the entire financial system, the bank in the recent past commenced steps to overhaul the KYC processes in banks, including the recently concluded customer account verification exercise. In furtherance of this exercise, the Bankers Committee at a recent meeting resolved to adopt the new National Identity Number, which is expected to be issued from September 2012.

CBN also said the Nigeria Inter-Bank Settlement System was working in collaboration with the NIMC to integrate the Nigeria Central Switch operated by NIBSS with the NIMS.

“This integration will enable banks to conduct identity verification on NIMS through NIBSS and will also enable NIBSS to provide identity-related value added services to banks” the CBN said.

Click here to download full circular