The Central Bank of Nigeria (CBN) has directed all banks and other financial institutions to publicly disclose details of dormant accounts, including the names of account holders, the type of accounts, and the branches where the accounts are domiciled, unclaimed balances, and other financial assets on their official websites. A dormant account is one that has been inactive for at least a year. The directive which was issued on Monday and signed by Michael Akuka on behalf of the Director of CBN’s Financial Policy and Regulation Department in a circular stated thus “Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria”, required that financial institutions must show key details such as the names of individuals authorized to operate the accounts, the type of account, and the branch where it is domiciled.
“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,” it said.
In response to concerns raised by stakeholders over potential breaches of the Nigeria Data Protection Act 2023 (NDPA), CBN says that the disclosures are legally justified in accordance with 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.
Under the guidelines, individuals with dormant accounts may find their details publicly accessible unless they reactivate their accounts or claim their balances.
Banks are expected to provide a mechanism for account holders to reclaim funds before such disclosures are made.
“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,” it stated.
