CBN orders banks to publish details of dormant accounts and unclaimed balances

Inorder to enhance transparency and improve financial inclusion, the Central Bank of Nigeria (CBN) has directed all banks and financial institutions in the country to publicly disclose details about dormant accounts, unclaimed balances, and other financial assets.

 The new guidelines, announced in a circular released on Monday, aim to address concerns related to unclaimed funds and dormant bank accounts that have been inactive for over a year.

A dormant account, as defined by the CBN, refers to any bank account that has remained unused for a period of at least one year. With this directive, the CBN seeks to bring greater accountability and clarity to the management of such accounts.

Financial institutions are now required to publish key details of these accounts on their official websites, including the name of the account holder, the account type, and the branch where the account is domiciled.

This move is intended to allow individuals to easily locate and claim their unutilized funds.

For other financial institutions (OFIs) that lack dedicated websites, the CBN has instructed that the information be made available on the websites of their respective industry associations.

This ensures that even smaller financial entities comply with the new regulations, making the information accessible to a broader audience.

The CBN has also addressed concerns regarding potential breaches of the Nigeria Data Protection Act (NDPA), 2023. While privacy is a crucial aspect, the CBN clarified that Section 25 (b) of the NDPA allows for justifiable deviations from its general principles.

Additionally, Section 72 (ii) of the Banks and Other Financial Institutions Act (BOFIA) grants the CBN the authority to issue guidelines on the management of unclaimed funds in financial institutions.

The information that must be disclosed will be limited to essential details such as the name of the account holder, account type, the name of the bank, and the branch location.

This measure is designed to strike a balance between ensuring public access to the information and protecting the privacy of account holders.

This directive by the CBN is a vital step toward fostering greater trust in Nigeria’s banking system, promoting financial inclusion, and helping individuals reclaim lost or forgotten funds.

By providing clearer access to dormant account details, the CBN aims to reduce the growing number of unclaimed financial assets in the country and ensure that these funds are appropriately managed.