Deposit Money Banks (DMBs) have warned that restriction will be placed on the accounts of Designated Non-financial Businesses and Professions (DNFBPs) operators that failed to comply with the Know-Your Customer (KYC) requirement of the Central Bank of Nigeria (CBN).

The CBN’s deadline for compliance with the KYC update by the operators elapsed last Wednesday, April 30th.

The DNFBPs, according to the central bank, include dealers in jewelry, precious metals and stones, dealers in cars and luxury goods, chartered/professional accountants, audit firms, tax consultants, clearing and settling companies, lawyers and notaries, independent legal practitioner and supermarkets.

Others are hotels and other businesses in the hospitality industry, trust companies service providers, casinos (including internet and ship-based Casinos),   estate surveyors, valuers and real estate agents, religious and charitable organisations, pool betting, lottery and non-governmental organisations.

As a result of this, some banks have informed their customers that were yet to comply with the policy that they will not be able to operate their respective accounts until the KYC conditions are met.

For instance, First City Monument Bank Plc, in a notice to its customers at the weekend, said: “Kindly note that after today`s (April 30th, 2013) deadline, a restriction will be placed on your account pending when this requirement is met.
“In line with the CBN’s directive, it is mandatory that all DNFBPs obtain certificate of registration from the Special Control Unit against Money Laundering (SCUML) and present copies of same to their bank to update their KYC information. Please disregard this mail if you have already registered with SCUML or you do not fall into the category of customers listed above.”

The central bank had explained that it introduced the policy in line with its resolve to control money laundering and the financing of terrorism in the country. According to the CBN, the policy is also part of its drive to enhance KYC in the industry.

Source: Thiosday (by Obinna Chima)