The Central Bank of Nigeria (CBN) has mandated all banks and financial institutions to publicly disclose details of dormant accounts, unclaimed balances, and other financial assets on their official websites.
This directive, outlined in a circular titled “Guidelines on Management of Dormant Account, Accounts, Unclaimed Balances and Other Financial Assets in Banks and Other Financial Institutions in Nigeria,” was issued on Monday.
It was signed by Michael Akuka on behalf of the director of CBN’s financial policy and regulation department.
According to the CBN, a dormant account is defined as one that has been inactive for at least one year.
As part of the new regulations, banks are required to publish key details such as the names of individuals authorized to operate the accounts, the type of account, and the branch where the account is domiciled.
This information must be readily available on their official websites.
In addition, for Other Financial Institutions (OFIs) that lack dedicated websites, the CBN has instructed them to publish the required information on the websites of their respective industry associations.
The CBN emphasized that this measure aims to enhance accountability and transparency within the banking sector.
Moreover, it addresses concerns regarding potential violations of the Nigeria Data Protection Act, 2023 (NDPA).
In response to these concerns, the CBN clarified that “Section 25 (b) of the NDPA permits justifiable deviations from the general principles of the Act.”
Furthermore, “Section 72 (ii) of the Banks and Other Financial Institutions Act mandates the Central Bank of Nigeria to issue guidelines on the administration of unclaimed funds in banks and other financial institutions.”
Meanwhile, the directive also requires that the information be published annually in at least two national daily newspapers.
The CBN’s decision follows an earlier directive issued on July 19, 2024, which instructed banks and financial institutions to transfer unclaimed balances and dormant account funds to the apex bank’s designated accounts.
This move is expected to boost public trust in the banking system by increasing transparency and accountability among financial institutions.
