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CBN introduces KYC Requirements for banks, sets new deposit limit for account holders

By on January 24, 2013

CBN Governor, Mallam Sanusi Lamido

The Central Bank of Nigeria (CBN) has introduced new deposit limits for account holders, which affects all categories of accounts and has also introduced three-tier Know Your Customer (KYC) requirements for banks.

The new policy sets N20, 000 as the maximum single deposit amount, CBN pegged the maximum cumulative balance at N200, 000. The new policy sets N50, 000 as the highest single deposit and leaves the highest cumulative balance of N400, 000 on the Medium Value Account.

On the other hand, it set no limit for the cumulative balance of High Value Accounts.

The new policy separated bank customers into Low Value Accounts, Medium Value Accounts and High Value Accounts which stand for Level one, level two and level three respectively.

A circular signed by the CBN Director, Financial Policy and Regulation, Chris Chukwu, was issued to all banks and it gave reasons why the policy turned out to be difficult, he said it discovered that access to essential banking services and other financial services is needed in realizing the guidelines on financial inclusion.

Chukwu called on banks to implement the new KYC requirement, stating that the new policy was designed to curb corruption and reduce money laundering.

He disclosed that Low Value Accounts will be monitored closely by the financial institutions, although there will be less inspection by bank examiners. He said the bank accounts can be opened at any branch or through account agents, but the accounts will not allow international transfers and no amount is needed for opening.

Adding, he said the Medium Value Accounts need to be opened in person at the branches, and the accounts are going to be just savings and no amount required for opening, also the account holders information would be cross checked and saved during the opening process, otherwise they will be no room for withdrawal.

Regarding high value accounts, he said banks would need to get, confirm, and maintain copies of all the mandatory documents for accounts opening. In addition, the account must be opened in person at the bank’s branches and the accounts can be both savings and current.

Chukwu said, regarding mobile banking products, there will be a maximum transaction limit of N100, 000 and daily limit of N1 million. However, he said the products were subject to the CBN Regulatory Framework for mobile banking services in Nigeria.

“All accounts, no matter how low the transaction or the risks, must be subjected to continuous suspicious transactions monitoring by financial institutions which will determine when incremental KYC requirements need to be provided by the customers,” he said.

He disclosed that CBN will make sure banks comply with the regulatory framework, adding that “Non-compliant financial institutions would be sanctioned in line with the provisions of extant laws and regulations.” According to him, “64.1 per cent representing 56.3 million adult Nigerians do not have access to financial services.”

4 Comments

  1. GEORGE AJAELU

    January 24, 2013 at 12:36 pm

    With this new policy, that means many will be push out of banking system into the labour market, which will compound the problem more.
    What alternative do they have for those the commercial banks will push out, because if they are limited there jobs will be limited too and people will be pushed out because they no longer have what to do there. I pray that God will give my people knowledge on how to tackle problem and not to solve one and create more bigger problems because of the side effect of the one they have solved. God bless Niger, we will get there one day.

  2. Yenyo Iromini Jr.

    January 24, 2013 at 8:46 pm

    this stupid people are crazy!!!!!!!!!!!!

  3. hloy laff

    January 25, 2013 at 7:02 pm

    nonse, why didnt they talk abt level 3 account.stupid policy for widening the gap btw the rich and masses.If my God bless me with millions today,does that mean i will hav to go to court b4 i can access my blessing.dried brain autocrat.

  4. bintex

    January 26, 2013 at 12:09 am

    This is a very good measure that will check mate the menace of money laundry, terrorism, lack of Jobs in Nigeria, economic instability just to mention but few, if only WHO is the country will allow this to work. May God help you CBN governor.