The Central Bank of Nigeria has issued a crucial directive aimed at curbing online fraud and bolstering consumer confidence. This directive, posted on the apex bank’s website on December 7, 2023, mandates all licensed financial institutions to prominently display their corporate names across their websites, portals, and online applications.
In a bid to combat deceptive practices and enhance transparency, the CBN has set a deadline of January 31, 2024, for financial institutions to comply with this directive. The apex bank has sternly warned that failure to adhere to this directive will result in appropriate sanctions.
Furthermore, financial institutions are also required to incorporate the phrase “Licensed by the Central Bank of Nigeria” alongside or below their corporate names. This measure aims to facilitate public recognition and foster trust and confidence in the financial products and services offered by these institutions.
The statement released by the Central Bank of Nigeria emphasizes the importance of this directive in mitigating risks to consumers, rectifying negative perceptions, and enabling easier recourse for consumers when needed.
“The Central Bank of Nigeria has observed with concern that some licensed entities operating transaction websites/portals or online applications do not prominently display their corporate names, posing risks to consumers and leading to misconceptions about the products or services offered,” the statement reads.
In light of these observations, the CBN has mandated all licensed financial institutions to:
– Prominently display their corporate names on all their websites, portals, and online applications.
– Include the statement “Licensed by the Central Bank of Nigeria” alongside or below their corporate names.
Financial institutions are strongly urged to ensure full compliance with this directive by the stipulated deadline, as any failure to do so will result in the imposition of appropriate sanctions.
This move by the Central Bank of Nigeria underscores its commitment to fostering a secure and transparent financial environment, bolstering consumer protection, and mitigating the risks associated with online transactions.
The implementation of these measures is poised to instill confidence in consumers, safeguard against fraudulent activities, and ultimately fortify the integrity of Nigeria’s financial landscape. Through this decisive action, the CBN is taking significant strides to engender trust and reliability in the digital financial sphere, fortifying the foundation of Nigeria’s financial sector.
