CBN Mandates Banks to Publish Lists of Dormant Accounts to the Public

 

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The Central Bank of Nigeria (CBN) has issued a directive requiring banks and other financial institutions to publish lists of dormant accounts, unclaimed balances, and other financial assets. In a circular dated February 17, 2024, the apex bank stated that the move aligns with its Guidelines on the Management of Dormant Accounts issued last year. The directive mandates that the lists be published in at least two national daily newspapers and on the institutions’ websites. For financial institutions without websites, the lists should be published on their respective association’s websites.

The information to be published includes the names of account holders, individuals authorized to operate the accounts, and the bank branches where the accounts are domiciled. The CBN emphasized that the publication must be done annually to ensure transparency and compliance. This directive aims to address concerns raised by stakeholders regarding the management of unclaimed funds and dormant accounts.

The CBN also clarified that the publication of such information does not breach the Nigerian Data Protection Act (NDPA) 2023. It cited Section 25(b) of the NDPA, which permits deviations from the Act’s general principles under certain conditions, and Section 72(ii) of the Banks and Other Financial Institutions Act (BOFIA), which empowers the CBN to issue guidelines on unclaimed funds.

The circular further specified that the details to be published on websites or in newspapers should include the account name, type of account, bank name, and branch location. This measure is expected to enhance accountability and ensure that rightful owners of dormant accounts and unclaimed balances can reclaim their funds.

The CBN’s directive underscores its commitment to promoting transparency in the financial sector while addressing stakeholders’ concerns about data protection. By making this information publicly available, the apex bank aims to facilitate the recovery of unclaimed funds and strengthen public trust in the banking system.

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#Nigeria