CBN orders financial institutions to display business names online, others

• The CBN’s directive is aimed at engendering trust and confidence in the use of such products and services
• Says lack of corporate names on transaction websites/portals or online applications can lead to a negative perception of products or services

The Central Bank of Nigeria has issued a directive to all licensed financial institutions to display their corporate names conspicuously on all their websites, portals, and online applications.

This directive was made public on the apex bank’s website on December 7 2023.

The CBN’s directive is aimed at engendering trust and confidence in the use of such products and services.

The apex bank noted that the lack of corporate names on transaction websites/portals or online applications can lead to a negative perception of the products or services, mislead consumers, and difficulty in seeking redress when the need arises.

The banks are in addition to displaying their corporate names also required to include the phrase “Licensed by the Central Bank of Nigeria” beside or under their names.

The CBN has issued a deadline of January 31, 2024, and failure to comply will attract appropriate sanctions.

The statement reads: “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.”

“Given 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.”