Account update: Banks await CBN’s directive on non-compliant customers

Posted by admin Headlines Wednesday, February 2nd, 2011

Following the expiration of the deadline given to customers of commercial banks to update their accounts, the various Deposit Money Banks have said that they are waiting for the next line of action from the Central Bank of Nigeria.

Some bank officials told our correspondent on Wednesday that they were still waiting for further directives from the apex body on non-compliant customers.

A senior official of one of the banks, who spoke on the condition of anonymity, said that the bank had yet to receive any information on customers, who failed to update their accounts.

Another bank official, who also asked not to be mentioned, said, “So far, no customer has complained of being barred from making transactions on their accounts.”

The account update, according to the CBN, is part of the customer’s due diligence, which is accepted worldwide as a tool for the fight against money laundering and terrorism financing as well as protecting the interest of customers.

Our correspondent, however, gathered that most of the banks were still giving out update forms to customers; jut as some customers were seen filling and submitting the forms to bank officials.

For instance, at a branch of the Guaranty Trust Bank Plc on Marina road, Lagos, customers were seen collecting the updates forms from the customer care officers.

Also at the Sabo branch of the First Bank of Nigeria Plc, bank officials gave out and collected forms from customers.

The situation was not different at Zenith Bank Plc, United Bank for Africa Plc, Diamond Bank Plc and Oceanic Bank International Plc, among others.

The Head, Corporate Affairs, CBN, Mr. Muhammed Abdullahi, told our correspondent in a telephone interview on Wednesday that the non-compliant customers would not be able to operate their accounts “until they update their accounts.”

He said, “As far as the CBN is concerned, those that could not update their accounts within the deadline cannot operate their accounts until they do so. Therefore, there is nothing wrong if banks continue to issue forms for the update.”

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

But after reviewing the progress made and the response of the banking public at the end of December, the apex bank “extended the deadline for the information update of bank accounts from December 31, 2010 to January 31, 2011.”

The apex bank also “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.”

-Punchwp_posts