In a recent circular issued by the Central Bank of Nigeria (CBN), a sweeping mandate has been put forth, compelling all financial institutions within its regulatory purview, encompassing banks, other financial entities, payment services providers, and international money transfer operators, to prominently showcase their corporate names on all online business platforms. This directive includes websites, portals, and mobile applications.
The circular, signed by Haruna Mustafa, the CBN’s Director of Financial Policy and Regulation, emphasizes the necessity for every registered financial institution in Nigeria to legibly exhibit its legal name across all online interfaces. The move comes as a response to observed practices where some licensed entities operating transaction websites, portals, or online applications have refrained from conspicuously displaying their corporate names, resulting in difficulties for customers seeking redress when necessary.
The specific concerns outlined in the circular underscore the potential risks to consumers arising from this lack of transparency. These risks include negative perceptions of products or services, consumer confusion, and impediments to seeking redress.
The circular lays out the following key requirements for compliance:
1. **Conspicuous Display of Corporate Names:** All licensed financial institutions are mandated to conspicuously display their corporate names on all their online business platforms, namely websites, portals, and online applications.
2. **Inclusion of CBN Licensing Information:** Financial institutions are further required to include the statement “Licensed by the Central Bank of Nigeria” beside or under their displayed corporate names.
The CBN has set a firm deadline of January 31, 2024, for financial institutions to align with these directives. Failure to comply within this timeframe will result in the imposition of appropriate sanctions.
To provide context for the new directive, consider the scenario of a mobile money operator named Ciroma Chukwuma Adekunle Limited, which offers an online payment application under the brand name CCA. As per the CBN order, this company is obligated to prominently display its legal name, “Ciroma Chukwuma Adekunle Limited,” on its mobile application, website, and all other online business platforms it operates. Additionally, the company is mandated to include the statement “Licensed by the Central Bank of Nigeria” either under or beside its corporate name.
This move by the CBN is not only geared towards enhancing transparency in the financial sector but is also aimed at fostering trust and confidence among consumers utilizing the products and services offered by these institutions. The regulatory body contends that such transparency is crucial for mitigating risks associated with online transactions and ensuring a seamless process for customers seeking recourse.
In conclusion, the CBN’s directive reflects a proactive approach to addressing potential challenges in the financial sector related to online services. As the January 31, 2024, deadline approaches, financial institutions are expected to expedite their efforts to comply with these guidelines, thereby contributing to an environment of enhanced consumer protection and confidence in the digital financial landscape. Stay tuned to Infostride News for further updates on this regulatory development.
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