***Reads Riot Act to operators on compliance
By Harry Awurumibe, Editor, Abuja Bureau
In a move geared towards mitigating and curbing unscrupulous activities in the industry, the National Lottery Regulatory Commission (NLRC) has launched the National Premium Identity Verification Platform (NPIVP).
This is even as the National Financial Intelligence Unit, (NFIU) the Nigerian Communication Commission (NCC) as well as the Control Unit against Money Laundering (SCUML) and others have hailed the initiative.
According to the Director General of the NLRC, Mr. Lanre Gbajabiamila, who spoke during a Stakeholders’ Engagement on Know Your Customer (KYC) and Verification Issues in the Nigerian Gaming Industry held at his office in Abuja, the new NPIVP will provide identification in less than 8 seconds, attach real-time human faces to players, minimize fraud, ease compliance and encourage more participation in the industry.
Lamenting Federal Government’s concern about prevalent complaints relating to customer identity and verification in the industry, the DG said further that the initiative is in line with the Commission’s mission of creating a safe and secure environment for operators and players.
“Our mission in the NLRC is to create an enabling, safe and secure environment for operators and players while ensuring the Nigerian Gaming Industry thrives. As we are aware, the National Lottery Regulatory Commission is the apex gaming regulatory institution in Nigeria, saddled with the responsibility of regulating the operation and business of the national lottery, setting standards, guidelines and rules; that ensure transparency and integrity and also protect the interest of players, stakeholders and the public; while also carrying out periodic industry-wide assessments and other such duties as may be directed by the President; per the National Lottery Act 2005 (as amended).
“To this end, the Commission has collaborated with other Federal Government agencies to promote the gaming industry and ensure a safe and secure gaming environment. We want to notify you that the Commission recently executed a memorandum of understanding with the National Financial Intelligence Unit, NFIU, the Nigerian Communication Commission, NCC, as well as the Control Unit against Money Laundering, SCUML.
“More importantly, the NFIU and the CBN have brought to the attention of the Commission the gaming operators’ low compliance with the existing Anti Money Laundering and Combating the Financing of Terrorism Laws in Nigeria,” Gbajabiamila said.
Reading the Riot Act to operators, Gbajabiamila directed all gaming operators to identify and verify the players and users of their various gaming platforms, while ensuring that the collected and collated personal data is secure.
“Concerning the minimum requirement(s) of Customer due diligence (KYC), it is imperative to state that ALL Gaming Operators MUST identify and verify the players and users of their various gaming platforms while ensuring that the collected and collated personal data is secure.
“I want to restate that Section 4 of the Money Laundering (Prevention and Prohibition) Act 2022 mandates Gaming Operators to identify and verify customers’ identity before establishing and including ongoing business relations.
“Section 4 (1) (b) of the Act and Section 33 (3) of the EFCC DNFBPs Regulation 2022 provide that businesses shall verify the identity of their customers using a reliable, independent source, document, data or information. Importantly, Section 2.1(b) of the Nigeria Data Protection Regulation, 2019, enumerates that data obtained from data subjects should be accurate,” Gbajabiamila stated.
Reacting to the initiative, the Commissioner, Nigeria Data Protection Bureau (NDPB), represented by a senior officer of the Bureau, Mr. Babatunde Bamgboye, said that the proactiveness of the Commission was timely and in line with the Federal Government’s Anti-Money Laundering Act.
He said: “We want to first commend the National Lottery Regulatory Commission for putting forward this initiative.
Similarly, the Team Lead of the Nigerian Financial Intelligence Unit (NFIU), Mr. Abbas B., said the new NPIVP will help tackle criminality in the lottery industry by reporting suspicious transactions.
According to him, “It’s a brilliant innovation”.
“The gateway to tackling criminality is Knowing Your Customer (KYC) and the NPIVP is a step in the right direction. It is a brilliant innovation because it will do due diligence on customers/players in the lottery industry. This is really commendable going forward,” he added.
For the representative from the Central Bank of Nigeria (CBN) Mr. Abubakar Zanna, the NPIVP will mitigate hacking of customers’ accounts by criminals, as well as tackle fraud in the system.
“The CBN has been inundated with reports of customers’ wallets being hacked daily but this initiative will help tackle this. The CBN is willing to collaborate further with the NLRC in making sure that the benefits are maximized,” he said.
On his part, the representative from the Nigeria Communications Commission (NCC), Clement Omife, who is the Deputy Director, Consumer Affairs Bureau, said his agency has done a lot about KYC, especially in partnership with the National Identity Management Commission (NIMC) because it is a critical aspect of its mandate.
“We really appreciate the NLRC for this wonderful initiative. We have been doing this KYC and I can tell you that it will help mitigate a lot of criminality in the lottery industry. The NCC is ever ready to collaborate further with the NLRC to make sure this project succeeds.”
Reacting to the initiative, the Association of Nigerian Bookmakers (Lottery Operators) led by their Executive Secretary, Akingba Olabimpe, were unanimous in their support for the NPIVP but raised fears about the success due to issues of jurisdiction between the Federal/State regulators.
According to her, they already had KYC in their various companies but want the Commission to address the issue of jurisdiction as it affects states, adding that the initiatives could also lead to double taxation on them if the jurisdictional issues are not addressed.
In his response, the DG assured that the Commission was aware of the operators’ challenges and that the issue of jurisdiction between the states was already in court and will be resolved soon. He emphasized further that the NPIVP was a Federal Government initiative that must be complied with without question as they have nothing to worry about.
“The NPIVP is a Federal Government initiative and you have no choice but to comply. NLRC is a Federal Government regulator and will not depend on operators’ data when it comes to KYC.
“I want to assure you that state regulators have no power to negate a Federal Law. The NPIVP provides a second layer verification and your data is safe with us. You also need to let us know who your independent verifiers are because things must be done right.
“The NPIVP has come to stay but every grey area noticed will be sorted out. It’s a new dawn for the lottery industry in Nigeria,” the DG concluded.
The meeting is the first since the reappointment of the Director General, Mr. Lanre Gbajabiamila for another four-year term.
