CBN orders banks to disclose dormant account details, unclaimed balances

From Adanna Nnamani, Abuja

The Central Bank of Nigeria (CBN) has directed all banks and other financial institutions to publish details of dormant accounts, unclaimed balances, and other financial assets in line with the Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria 2024.

CBN issued the directive in a circular, signed by Michael Akuka on behalf of the Director of the Financial Policy and Regulation Department, on Monday.

According to the circular, financial institutions must display the names of individuals authorised to operate these accounts, the type of account, and the branch where the account is domiciled on their official websites.

In cases where other financial institutions (OFIs) do not have websites, they are required to publish the information on their association’s website.

Additionally, banks are required to publish this information annually in at least two national daily newspapers or at the premises of state and unit microfinance banks.

In response to concerns regarding possible violations of the Nigeria Data Protection Act (NDPA) 2023, the CBN clarified that Section 25(b) of the NDPA permits exceptions in justifiable circumstances, while Section 72(1) of the Banks and Other Financial Institutions Act authorises it to issue guidelines on the administration of unclaimed funds in banks and other financial institutions.

It said:

“The Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria 2024, requires banks and some other financial institutions to publish on their websites the names of individuals authorised to operate the accounts, the type of account, and the address of the branch where the account is domiciled. In the case of other financial institutions (OFIs) without websites, they are to publish on their association’s website.”

“In furtherance thereof, and in response to enquiries from stakeholders regarding the possible breach of the Nigeria Data Protection Act, 2023 (NDPA), banks and other financial institutions are required to note the following: Section 25(b) of the NDPA permits justifiable deviations from the general principles of the Act. Also, Section 72(i) 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.”

“Information to be published on banks’ websites, as well as the association’s website (where applicable), shall include the name of the account, the type of account, the name of the bank, and the branch where the account is domiciled ONLY.”

“Information to be published annually in at least two national daily newspapers or the premises of state and unit microfinance banks shall also convey the details as listed above.”