CBN Orders Banks to Publish Details of Dormant Accounts, Unclaimed Balances

The Central Bank of Nigeria (CBN) has directed all banks and financial institutions to publish details of dormant accounts, unclaimed balances, and other financial assets on their official websites. The move is aimed at ensuring transparency and compliance with regulatory guidelines.

According to the CBN, a dormant account is one that has remained inactive for at least one year. This directive was outlined in a circular issued on Monday, titled “Guidelines on Management of Dormant Account, Accounts, Unclaimed Balances and Other Financial Assets in Banks and Other Financial Institutions in Nigeria.” The circular was signed by Michael Akuka on behalf of the Director of CBN’s Financial Policy and Regulation Department.

Under the new regulations, financial institutions are required to disclose essential details such as the names of individuals authorized to operate the accounts, the type of account, and the branch where it is domiciled. This information must be made available on their official websites. For other financial institutions (OFIs) without dedicated websites, the CBN has mandated that the information be published on the website of their respective industry associations.

The CBN also addressed concerns regarding potential breaches of the Nigeria Data Protection Act, 2023 (NDPA). It clarified that Section 25 (b) of the NDPA permits justifiable deviations from general data protection principles. Additionally, Section 72 (ii) of the Banks and Other Financial Institutions Act empowers the CBN to issue guidelines on the administration of unclaimed funds in banks and other financial institutions.

The information to be published on bank websites, as well as on industry association websites where applicable, will include the name of the account holder, the type of account, the name of the bank, and the branch where the account is domiciled. Furthermore, financial institutions must publish these details annually in at least two national newspapers and display them at the premises of state and unit microfinance banks.

This directive follows an earlier order issued by the CBN on July 19, 2024, requiring banks and financial institutions to transfer unclaimed balances and dormant account funds to the apex bank’s designated accounts.