The Central Bank of Nigeria (CBN) has issued a new regulation requiring all banks and financial institutions to publish details of dormant accounts, unclaimed balances, and other financial assets on their official websites.
This directive was 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,” signed by Michael Akuka on behalf of the CBN’s Financial Policy and Regulation Department.
Key Details of the Directive
- Banks must display account details publicly
- The names of dormant account holders and their eligible beneficiaries (e.g., next of kin) must be listed online.
- The type of account and the branch where it is domiciled must also be disclosed.
- Financial institutions without websites
- If a bank or financial institution does not have an official website, it must publish the information on the website of its association.
- Newspaper Publication Requirement
- The directive further mandates that banks must publish these details yearly in at least two national newspapers or display them at their physical premises.
CBN’s Justification for the New Regulation
The CBN stated that the publication of dormant accounts and unclaimed balances is in response to inquiries about a possible violation of the Nigeria Data Protection Act, 2023 (NDPA). However, it cited legal backing for the policy:
- Section 25(b) of the NDPA allows reasonable departures from the Act’s broad privacy principles.
- Section 72(ii) of the Banks and Other Financial Institutions Act (BOFIA) grants the CBN the authority to regulate the management of unclaimed funds in financial institutions.
According to 9am News Nigeria, a bank account is classified as dormant if it has not been used for at least 365 days.
This new regulation is part of the CBN’s broader efforts to improve transparency and address regulatory challenges in Nigeria’s financial sector.
Financial institutions are expected to comply with the directive to enhance public trust and facilitate easier access to unclaimed funds by rightful beneficiaries.
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