CBN Orders Banks to Publish Dormant Accounts and Unclaimed Balances Online

In a bid to enhance financial transparency, the Central Bank of Nigeria (CBN) has mandated that all banks and financial institutions publish detailed information about dormant accounts, unclaimed balances, and other financial assets on their official websites.

A dormant account, as defined by the CBN, is one that has remained inactive for a minimum of one year. Under the new regulations, institutions are required to disclose the account holder’s name, the type of account, and the branch location. If a financial institution lacks its own website, the CBN has directed that such details be posted on the website of the relevant financial association.

The CBN’s latest circular, signed by Michael Akuka on behalf of the Director of the Financial Policy and Regulation Department, highlights the need to comply with the Nigeria Data Protection Act, 2023 (NDPA). It points out that Section 25(b) of the NDPA permits necessary deviations in specific cases, like this one. Moreover, the guidelines are in alignment with Section 72(ii) of the Banks and Other Financial Institutions Act, which mandates the CBN to regulate unclaimed funds.

Additionally, CBN has instructed that these details be published annually in at least two national newspapers. In the case of microfinance banks, the information should also be made available at their local branches.

This regulation also builds on a previous directive issued by the CBN on July 19, 2024, requiring banks to transfer unclaimed funds from dormant accounts to CBN’s central account. Furthermore, the guidelines also provide a framework for account owners and beneficial owners to reclaim funds from dormant accounts that have been inactive for up to a decade.