The Central Bank of Nigeria has introduced new three-tiered KYC requirements in order to reduce the unbanked money in the system.
The initiative will expand the limits of Financial Inclusion in Nigeria to capture the unbanked by relaxing formerly rigid Know Your Customer (KYC) requirements.
According to a memo released by Director, Financial Policy and Regulation Department, Mr. Chris Chukwu the policy is to offer succor to the disadvantaged members of the society.
The memo partly stated, “The CBN has taken steps to ensure that socially and financially disadvantaged persons should not be precluded from opening accounts or obtaining other financial services for lack of acceptable means of identification.
“Given that the CBN AML/CFT regulation, 2009 has made provision for this class of persons, it has become expedient to issue three-tiered KYC requirements for compliance by banks and other financial institutions in order to further promote financial inclusion.”
The three tiered system of KYC checks applies to three distinct types of banking customers, namely low value, medium value and high value accounts.
Read the CBN circular here