Publish Dormant Account Holders’ Details, Unclaimed Balances Online- CBN Tells Banks

The Central Bank of Nigeria (CBN) has directed all banks and other financial institutions to disclose details of dormant accounts, including the names of account holders, the type of accounts, and the branches where the accounts are domiciled.

The directive, issued in a circular dated 17 February and signed by the Director, Financial Policy and Regulation Department, Micheal Akuka, requires these details to be published on banks’ websites, industry association websites, and in at least two national newspapers.

The move follows the implementation of the Guidelines on the Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria 2024. The guidelines aim to enhance transparency and ensure unclaimed funds are properly accounted for.

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

“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 authorized 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, to publish on their association’s website”.

 “In furtherance thereof, and in response to inquiries 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,” the CBN stated.

Section 25 (b) of the NDPA permits justifiable deviations from the general principles of the Act. Additionally, 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.

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

According to the bank, the directive comes amid concerns from stakeholders over potential breaches of the Nigeria Data Protection Act 2023 (NDPA). However, the CBN insists that the disclosures are legally justified.