The house of representatives has asked the Central Bank of
Nigeria (CBN) to suspend the directive that banks should collect and verify the
social media handles of customers.
The lower legislative passed the motion during the plenary
session on Tuesday following the adoption of a motion sponsored by nine
lawmakers.
In the guideline issued in June, the apex bank said the
objective of the regulation — which is part of banks’ know-your-customer (KYC)
procedures — is to prevent financial crimes and terrorism and to enhance the
precision and thoroughness of customer identification.
According to the CBN, the policy is intended to enable financial institutions to gather information in accessing customers’ online presence and activities for better assessment of potential risks associated with money laundering, terrorism financing and proliferation financing.
While leading the debate on the motion, Kelechi Nwogu, a lawmaker from Rivers, said while the policy
is commendable, it violates section 37 of the constitution which guarantees
privacy rights.
“As laudable as this directive may appear, it is unnecessary
as it is likely to bear pressure on teeming Nigerian masses at a trying
period,” he said.
He said financial institutions in the country already have
the names, telephone numbers, passport photographs, emails, national
identification numbers (NIN), biometric verification numbers (BVN), utility
bills and other basic requirements with which to identify, know and monitor
customers.
The lawmaker said there are better means of monitoring money
laundering and terrorism financing which are through the Nigeria Police Force
(NPF), Nigeria Financial Intelligence Unit (NFIU), the Economic and Financial
Crimes Commission (EFCC), intelligence and crime tracking agencies, among
others.
“If the directive takes effect, Nigerians who are not on
social media, with large turnovers from their businesses and trades, would be
compelled to or systematically excluded from formal banking systems with its
attendant negative effects and implications,” he said.
The legislator said the policy may cause “untold hardships”
to millions of Nigerians, especially the illiterate or semi-literate business
owners, traders and entrepreneurs living in the villages and rural areas who do
not have social media handles if the policy is implemented.
“Implementing the CBN’s directive at this point may clearly
be unnecessary as it is likely to bear a lot of pressure on teeming Nigerian
masses,” he said.
“There is a need to
revisit and halt the Central Bank of Nigeria directive to reduce the hardship
and pain faced by teeming Nigerians.”
The motion was unanimously adopted when it was put to a
voice vote by Tajudeen Abbas, speaker of the house and presiding officer.
‘STOP EXCESS CHARGES
AND ILLEGAL DEDUCTIONS’
In a related development, the house has asked commercial
banks to stop alleged “excess” illegal charges and deductions from customers’
accounts.
The house passed the motion after the adoption of a motion
sponsored by Godwin Offiono.
While moving the motion, Offiono claimed that financial
institutions in Nigeria indulge in the “unethical practice of fleecing their
customers through excess charges and unauthorised deductions”.
He said customers of deposit money banks are “groaning over
excessive charges on their accounts” and financial institutions have
“introduced different deductions to increase their income, a development that
is uncomfortable with customers”.
“Apart from stamp duty, bank customers also pay value-added
tax (VAT) charges applicable on all vatable transactions in their account,” he
said.
Following the adoption of the motion, the lawmakers resolved
to investigate the issue of “illegal deductions” by commercial banks.
Advertise on NigerianEye.com to reach thousands of our daily users
Please legislate on policy and laws that will alleviate the suffering of the masses not this play
ReplyDelete