Socio-Economic Rights and Accountability Project (SERAP) has asked the Folashodun Shonubi – led Central Bank of Nigeria (CBN) to “immediately withdraw its directive to banks to obtain information on customers’ social media handles for purpose of strengthening identification process in the banking system.
The group said that failure by the Apex bank to cancel its decision would lead to legal action .
In a letter dated June 24,2023 and signed by its Deputy Director,Kolawole Oluwadare, SERAP said The CBN regulations and directive to banks to obtain details of customers’ social media address violate Nigerians’ rights to freedom of expression and privacy. It is inconsistent and incompatible with the rule of law.
“The CBN ought to contribute to the advancement of respect for the rule of law and human rights in the discharge of its statutory functions, and not undermine or violate these fundamental legal requirements and standards.
“The purported mandatory requirement would inhibit Nigerians from freely exercising their human rights online. If obtained, such information may also be misused for political and other unlawful purposes.”
The group said it “would be grateful if the recommended measures are taken within 3 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest.”
It pointed out that the “CBN Regulations and directive to banks and other financial institutions would impermissibly restrict the constitutional and international rights to freedom of expression, privacy and victims’ right to justice and effective remedies”.
According to SERAP, “Requiring social media handles or addresses of customers as a means of identification would have a disproportionate chilling effect on the effective enjoyment by Nigerians of their rights to freedom of expression and privacy online.
“The CBN bears the burden of justifying any restriction on people’s freedom of expression and privacy. Under the Nigerian Constitution 1999 [as amended] and human rights treaties to which the country is a state party, any restrictions on these rights must be applied strictly so that the rights are not put in jeopardy.
“There are other means of identification such as passport, driver’s licence, Bank Verification Number (BVN), and Tax Identification Number (TIN), which banks and other financial institutions already require their customers to provide.”
“The additional requirement of obtaining details of a customer’s social media handle or address fails to meet the requirements of legality, necessity, and proportionality.”
The group added that the CBN failed to show how “details of customers’ social media handles or addresses would assist banks and other financial institutions to effectively implement and comply with the laws and regulations relating to customer due diligence”.
The CBN had Friday posted on its website,a publication on ( Customer Due Diligence ) which it said was designed to provide additional measures to regulate financial institutions.
The objective being to” further their compliance with relevant provisions of the Money Laundering ( Prevention and Prohibition) Act ( MLPPA), 2022, Terrorism ( Prevention and Prohibition) Act ( TPPA)2022, Central Bank of Nigeria ( Anti – Money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing of Weapons of Mass Destruction in Financial Institutions) Regulations,2022( CBN AML, CFT and CPF Regulations) and International best practices.
” And enable the CBN to enforce compliance with customer due diligence measures in line with the CBN AML, CFT and CPF Regulations “
Under its customer identification column, the CBN said financial institutions must identify their customers ( whether permanent or occasional, and whether natural or legal persons or legal arrangements) and obtain information on name, address,BVN and Social Media Handles.
” For individuals – legal name and any other names used ( such as maiden name) permanent address ( full physical address), residential address ( where the customer can be located) telephone number,e-mail address, and social media handle, date and place of birth,Bank Verification number, nationality; occupation; public position held; and name of employer”
Others include,”an official personal identification number or unique identifier contained in an unexpired document issued by a government agency that bears the name, photograph, and signature of the customer, such as passport, national identification card, residence permit, social security records,or drivers’ licence”
