KYC Verification techniques in Nigeria

5 KYC Verification Techniques to Become eNaira Merchant

When you apply to become an eNaira merchant, you would be required to prove to the Central Bank of Nigeria (CBN) that you have a means of confirming the identity of your customers.

Know your customers (KYC) verification techniques allow you to confirm the identity of your customers and prevent identity theft which may result in scams or money laundering while using eNaira platform.

Following the anti money laundering (AML) act of Nigeria, here are the top KYC verification techniques you can use to verify your customers’ identities.

 ID cards and document verification

The use of ID cards and documents are the oldest and most popular KYC verification techniques used in Nigeria.

As an eNaira merchant, you can use either the customer’s identity card or relevant document to confirm the authenticity of a transaction before processing it.

However, common ID cards and documents you can use for confirming eNaira transactions are:

  • The NIN (National identity number)
  • Drivers License
  • National ID card
  • Utility bills( NEPA)
  • International Passports

For example, you can sight the information stated on the customer’s ID card (at least the image) and ensure it corresponds totally with what is in his banking system before executing a transaction.

Passwords and pins:

Due to the rise of electronic banking, people now prefer to use pins and passwords as a means of proving their identity when they want to withdraw, transfer or deposit money.

This is probably because the use of passwords and pins is easier and faster than any other KYC verification method.

The types of pins and passwords you can use to verify customer identities as of 2021 includes:

  • Debit and credit card passwords 
  • Online banking pins

So, you can prevent being scammed by making sure your customers remember their passwords and pins before releasing any money to them via your eNaira merchant account.

If the client forgets his pin and it is not within your job specifications to provide a new one for him, you can direct him to your main bank.

Secret codes/(OTP) tokens

One-time passwords are a great way of immediately confirming customers identities as you can send a secret code/ OTP to the phone number or email linked to a bank account and ask the customer to confirm the code.

If the customer cannot assess the code, it means he is not authorized to use the account he provided for the transaction.

Banks in Nigeria that use OTPs are:

  • First bank plc 
  • Zenith bank plc
  • GTB bank 
  • Union bank
  • Eco bank
  • Access bank
  • FCMB bank

Signatures

For any Nigerian to create a bank account, a unique signature is required.

This is another way of verifying a clients’ identity as all it takes is a glance at the signature which the customer presents to you and the one that exists in the customer’s banking system to know if he is an impostor or not.

Fingerprint and facial biometrics

Using fingerprints and facial recognition software to confirm identities is becoming very popular in Nigeria.

This KYC verification technique is not only relevant in the banking sector. Most schools adopt this technique as well.

So, you as an eNaira merchant can use fingerprint scanners and facial recognition software controlled by your bank to confirm clients identities.

Note: All the above information given is referenced to the CBN agent banking eBook directory.

Any of the techniques above that you present to the CBN while applying to become an eNaira merchant can help you get instant approval.

Conclusion 

As an agent banker or eNaira merchant, the transactions you offer to your clients have to be verified.

It is within the rules and regulations binding the use of eNaira that the CBN requires you must state the KYC verification techniques you want to use for processing third party transactions via your eNiara merchant account before getting the approval.

In view of this, every tool stated above will suffice when verifying your customers identities are necessary.

If a client wants to make transactions but has no genuine means of verifying his identity, do not compromise. It is in your best interest to refer him to his bank.

Violating the CBN rules regarding eNaira transactions could cost you more than what you can ever imagine. So, be wise.

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