SERAP provides CBN 3 days to withdraw rules on prospects’ media deal with or face litigation

Key Highlights

• SERAP referred to as on the performing CBN Governor to instantly withdraw the provisions that make it necessary for financial institution prospects to supply their social media handles for the aim of identification.
• It said that the provisions violate Nigerians’ rights to freedom of expression and privateness and is inconsistent and incompatible with the rule of regulation.
• The advocacy group gave the CBN 3 days of the receipt and/or publication of this letter to withdraw the provisions or face acceptable authorized actions to compel it to conform.

The Socio-Financial Rights and Accountability Challenge (SERAP) has urged the performing Governor of the Central Financial institution of Nigeria (CBN), Mr. Folashodun Shonubi, to “instantly delete the patently illegal provisions within the Central Financial institution of Nigeria (Buyer Due Diligence) Laws directing banks to acquire info on prospects’ social media handles for the aim of identification.”

The advocacy group additionally urged him to “withdraw the Round quantity FPR/DIR/PUB/CIR/007/076 of 20 June 2023 mandating banks and different monetary establishments to implement and adjust to the illegal necessary provisions on prospects’ social media handles within the CBN Laws.”

Based on Part 6(a)(iv) of the CBN Laws, banks and different monetary establishments “shall establish their buyer and procure info on the social media deal with of the client.” Part 6(b)(iii) comprises an analogous provision.

That is contained in a letter dated June 24, 2023, and signed by SERAP deputy director Kolawole Oluwadare.

Violates freedom of expression, privateness

SERAP in its assertion stated,

• “The CBN Laws and directive to banks to acquire particulars of consumers’ social media addresses violate Nigerians’ rights to freedom of expression and privateness. It’s inconsistent and incompatible with the rule of regulation.
• “The CBN should contribute to the development of respect for the rule of regulation and human rights within the discharge of its statutory capabilities, and never undermine or violate these elementary authorized necessities and requirements.
• “The purported necessary requirement would inhibit Nigerians from freely exercising their human rights on-line. If obtained, such info might also be misused for political and different illegal functions.”

What SERAP is saying within the letter

• The letter from SERAP partly reads, “We’d be grateful if the advisable measures are taken inside 3 days of the receipt and/or publication of this letter. If now we have not heard from you by then, SERAP shall take all acceptable authorized actions to compel you and the CBN to adjust to our request within the public curiosity.
• “The necessary requirement of social media handles or addresses of consumers doesn’t serve any respectable purpose. Such info could also be used to unjustifiably or arbitrarily to limit the rights to freedom of expression and privateness.
• “SERAP is gravely involved that the CBN Laws and directive to banks and different monetary establishments would impermissibly limit the constitutional and worldwide rights to freedom of expression, privateness and victims’ proper to justice and efficient cures.
• “Requiring social media handles or addresses of consumers as a way of identification would have a disproportionate chilling impact on the efficient enjoyment by Nigerians of their rights to freedom of expression and privateness on-line.
• “The CBN bears the burden of justifying any restriction on folks’s freedom of expression and privateness. Beneath the Nigerian Structure 1999 [as amended] and human rights treaties to which the nation is a state occasion, any restrictions on these rights have to be utilized strictly in order that the rights aren’t put in jeopardy.
• “There are different technique of identification reminiscent of passport, driver’s licence, Financial institution Verification Quantity (BVN), and Tax Identification Quantity (TIN), which banks and different monetary establishments already require their prospects to supply.
• “The extra requirement of acquiring particulars of a buyer’s social media deal with or tackle fails to fulfill the necessities of legality, necessity, and proportionality.
• “The CBN Regulation doesn’t display how using social media deal with or tackle as a way of identification would serve to enhance banks and different monetary establishments’ skill to implement and adjust to the legal guidelines and rules referring to buyer due diligence.
• “The Directive by the CBN, which doesn’t, in any occasion, carry the drive of regulation, additionally fails to supply any rationalization as to how social media handles or addresses can facilitate compliance with rules referring to buyer due diligence.
• “Acquiring the main points of consumers’ social media handles or addresses would unduly intrude with the rights to freedom of expression and privateness. It could even be disproportionate to any purported respectable purpose that the CBN seeks to attain.
• “The information that there are enough technique of identification for CBN, banks and different monetary establishments to depend on to fulfill the requirement of Know Your Buyer additionally heighten considerations of overreach and confer far-reaching discretion on banks and monetary establishments.
• “Acquiring info on prospects’ social media handles or addresses as technique of identification is, subsequently, extra intrusive than vital.
• “The CBN fails to point out how particulars of consumers’ social media handles or addresses would help banks and different monetary establishments to successfully implement and adjust to the legal guidelines and rules referring to buyer due diligence.
• “Human rights, the rule of regulation and democracy are interlinked and mutually reinforcing and central to the common and indivisible core values and rules of the United Nations, the African Union and the Financial Neighborhood of West African States to which Nigeria belongs.
• “The CBN is sure to respect the constitutional and worldwide human rights of Nigerians together with the rights to freedom of expression and privateness.
• “Beneath the precept of pacta sunt servanda and normal rules governing the regulation of treaties, the CBN can also be sure to uphold and apply within the discharge of its statutory capabilities the human rights treaties to which Nigeria is a state occasion.’’

What you need to know

• Recall that on Friday, June 23, 2023, the CBN launched its Buyer Due Diligence Laws 2023 or monetary establishments below its regulatory purview, taking a decisive stance in opposition to monetary crimes.
• The CBN’s newest transfer goals to bolster compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) provisions whereas aligning with worldwide finest practices.
• In an effort to reinforce the accuracy and depth of buyer identification, the CBN made it necessary for monetary establishments to gather and confirm prospects’ social media handles as a part of their Know Your Buyer (KYC) necessities.