Toba Owojaiye reporting
Abuja, Nigeria
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 enhance transparency and ensure that rightful owners can reclaim their funds.
Truth Live News gathered that, according to the CBN, a dormant account refers to a bank account that has remained inactive for at least one year. The directive was outlined 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 circular, signed by Michael Akuka on behalf of the director of the CBN’s Financial Policy and Regulation Department, mandates financial institutions to display key details such as:
The name associated with the account
The type of account
The name of the bank
The branch where the account is domiciled
As part of the new regulations, all banks must publish this information on their official websites. For other financial institutions (OFIs) that do not have dedicated websites, the CBN has mandated that the information be published on the website of their respective industry associations.
Additionally, the information must be published annually in at least two national daily newspapers or displayed on the premises of state and unit microfinance banks.
Legal Framework and Data Protection Considerations
The CBN has justified this directive by referencing:
Section 25(b) of the Nigeria Data Protection Act, 2023 (NDPA), which allows justifiable deviations from general data protection principles.
Section 72(ii) of the Banks and Other Financial Institutions Act, which mandates the CBN to issue guidelines on the administration of unclaimed funds.
This new directive builds on an earlier order issued on July 19, 2024, which required banks and financial institutions to transfer unclaimed balances and dormant account funds to CBN-designated accounts. The move was part of broader efforts to manage unclaimed funds within the financial sector and ensure their proper utilization.
By enforcing these measures, the CBN seeks to:
Improve financial transparency and accountability within banks and financial institutions.
Ensure unclaimed funds are traceable and accessible to their rightful owners.
Strengthen public confidence in the banking system by reducing concerns over misappropriation of dormant funds.
This directive is expected to spark reactions from banking customers and privacy advocates, given concerns over data privacy and potential security risks. However, the CBN has reassured the public that only essential details will be disclosed, aligning with existing financial regulations.