SERAP To CBN: Withdraw Regulations On Customers’ SM Handles

Socio-Economic Rights and Accountability Project (SERAP) has threatened to drag the Central Bank of Nigeria (CBN) to court if it does not immediately suspend its regulations directing banks to obtain information on customers’ social media handles for identification.

SERAP, which made the threat through an open letter it wrote to the Acting Governor of the apex bank, Folashodun Shonubi, specifically wants the bank to delete the provisions in the Central Bank of Nigeria (Customer Due Diligence) Regulations.

The civil society organisation also wants Shonubi to withdraw the Circular number FPR/DIR/PUB/CIR/007/076 of 20 June 2023 mandating banks and other financial institutions to implement and comply with the mandatory provisions on customers’ social media handles in the CBN Regulations.

Section 6(a)(iv) of the CBN Regulations mandate banks and other financial institutions to identify their customers and obtain information on their social media handles. Section 6(b)(iii) contains a similar provision.

But the organisation in the letter dated June 24, 2023 and signed by its deputy director Kolawole Oluwadare, maintained the CBN regulations and directive to banks to obtain details of customers’ social media address violates Nigerians’ rights to freedom of expression and privacy.

It also stated that the regulations are inconsistent and incompatible with the rule of law.

SERAP further insisted that 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.

It also stressed that the purported mandatory requirement would inhibit Nigerians from freely exercising their human rights online and that if banks should obtain such information it may be misused for political and other unlawful purposes.

The civil society organisation further stated that the mandatory requirement of social media handles or addresses of customers does not serve any legitimate aim, saying such information may unjustifiably or arbitrarily restrict freedom of expression and privacy.

SERAP added that it is gravely concerned 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.

It said, “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 restrictions 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 jeopardised.

“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 necessity requirement implies an assessment of the proportionality of the grounds to ensure that the excuse of ‘regulations on customer due diligence’ is not used as a pretext to unduly intrude upon the rights to freedom of expression and privacy.”

SERAP affirmed that CBN regulation does not demonstrate how the use of social media handle or address as a means of identification would improve banks and other financial institutions’ ability to implement and comply with the laws and regulations relating to customer due diligence.

According to the organisation, the directive by the CBN, which does not, in any event, carry the force of law, also fails to explain how social media handles or addresses can facilitate compliance with regulations relating to customer due diligence.