The CBN has released a circular mandating all financial institutions under its purview, such as banks, other financial institutions, payment services providers, and international money transfer operators to display their corporate names on all their online business platforms, including websites, portals, and mobile apps.
Essentially, the circular requires that every registered financial institution in Nigeria legibly display its legal name on all its online business platforms.
The CBN gave a deadline of January 31, 2024, for the financial institutions to comply with the directive.
According to the circular signed by the CBN’s Director of Financial Policy and Regulation, Haruna Mustafa, the practice of not displaying the legal name on these online platforms has led to difficulty for some customers who sought redress when the need arose.
What the circular said,
- “The Central Bank of Nigeria has observed with concern that some licensed entities that operate transaction websites/portals or online applications do not conspicuously display their corporate names to facilitate recognition by the public. This practice portends risk to consumers of such products and services, including negative perception of the products or services, misleading consumers and difficulty to seek redress when the need arises.”
“In view of the above and to engender trust and confidence in the use of such products and services, all licensed financial institutions are hereby required to:
- Conspicuously display their corporate names on all their corporate names on all their websites, portals, and online applications.
- Include “Licensed by the Central Bank of Nigeria” beside or under their names.
- “Accordingly, financial institutions are to ensure full compliance with the above directive not later than January 31, 2024, as failure to do so will attract appropriate sanctions.”
For context, if a mobile money operator with the government name, Ciroma Chukwuma Adekunle Limited offers an online payment app called CCA; as per the new CBN order, the company is required to display the legal name “Ciroma Chukwuma Adekunle Limited” on its mobile application, website, and other online business platforms it operates.
The company is also mandated to include “Licensed by the Central Bank of Nigeria” under or beside its corporate name.
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