The Central Bank of Nigeria (CBN) has issued a directive requiring all banks and financial institutions to publicly disclose details of dormant accounts, unclaimed balances, and other financial assets on their official websites. This move aims to promote transparency and facilitate the recovery of unclaimed funds.
A dormant account is defined as any account that has remained inactive for at least one year. The CBN’s directive, contained in a circular titled “Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria,” mandates financial institutions to display key details such as:
– Account Information: Names of individuals authorized to operate the accounts, type of account, and branch where it is domiciled.
-Publication Requirements: Information must be published on banks’ websites, and for those without dedicated websites, on the website of their respective industry associations.
– Annual Publication: Details must also be published annually in at least two national daily newspapers or on the premises of State and Unit microfinance banks.
The CBN has addressed concerns about potential breaches of the Nigeria Data Protection Act (NDPA) 2023, citing sections that permit justifiable deviations from general data protection principles.
This directive builds upon an earlier order from the CBN on July 19, 2024, which instructed banks and financial institutions to move unclaimed balances and funds from dormant accounts into the apex bank’s designated accounts.
