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 official websites. This move is part of efforts to enhance transparency in the financial sector and ensure that rightful owners or their beneficiaries can reclaim their funds.
In a circular issued on Monday, titled Guidelines on Management of Dormant Accounts, Unclaimed Balances and Other Financial Assets in Banks and Other Financial Institutions in Nigeria, the apex bank outlined specific regulations governing dormant accounts. A dormant account is defined as one that has remained inactive for at least one year.
The directive, signed by Michael Akuka on behalf of the Director of the Financial Policy and Regulation Department of the CBN, mandates financial institutions to publicly disclose essential details, including the names of authorized account holders, the type of account, and the branch where the account is domiciled. In cases where Other Financial Institutions (OFIs) do not have individual websites, the CBN has instructed them to publish the information on their association’s website to ensure compliance.
Addressing concerns over data privacy, the CBN clarified that the directive aligns with existing legal provisions. It cited Section 25(b) of the Nigeria Data Protection Act, 2023 (NDPA), which allows for justifiable deviations from the general principles of the Act. Additionally, Section 72(ii) of the Banks and Other Financial Institutions Act (BOFIA) empowers the CBN to issue guidelines for managing unclaimed funds in financial institutions.
According to the circular, the published information will be limited to the account name, account type, name of the bank, and branch where the account is domiciled. This information will also be published annually in at least two national newspapers and displayed at the premises of state and unit microfinance banks to ensure wider public access.
The latest directive follows an earlier instruction from the CBN on July 19, 2024, which required banks and financial institutions to transfer unclaimed balances and dormant funds to designated CBN accounts. The apex bank also issued guidelines for account holders and beneficiaries on reclaiming funds that have remained dormant for up to 10 years.
This development is expected to address longstanding concerns regarding unclaimed financial assets in Nigeria’s banking sector. While some stakeholders have welcomed the move as a step toward greater accountability, others have raised questions about potential risks, including privacy concerns and possible misuse of publicly available financial information.
With this directive, the CBN aims to ensure that unclaimed funds are properly accounted for while giving affected individuals the opportunity to recover their assets. Banks and financial institutions are expected to comply fully with the guidelines to avoid regulatory sanctions.
