CBN directs banks to publish details of dormant accounts, unclaimed balances on website

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 on their website.

A dormant account is a bank account that has remained inactive for at least one year.

CBN outlined the regulations in a circular on Monday, titled ‘Guidelines on Management of  Dormant Account, Accounts, Unclaimed Balances and Other Financial Assets In Banks And Other Financial Institutions in Nigeria’.

The circular was signed by Michael Akuka, on behalf of the director of the financial policy and regulation department of CBN.

CBN said financial institutions must display the names of individuals authorised to operate the 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, CBN said they are required to publish the information 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,” CBN said.

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

“2. 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 in (2) above.”

On July 19, 2024, CBN directed banks and other financial institutions to deposit unclaimed balances and funds in dormant accounts to the apex bank accounts.

CBN also issued regulatory guidelines for account owners and beneficial owners to recover their funds dormant for up to 10 years.