CBN Orders Banks to Reveal Dormant Accounts – Here’s What You Need to Know

CBN Mandates Banks to Disclose Dormant Accounts and Unclaimed Funds
The Central Bank of Nigeria (CBN) has issued a new directive requiring banks and financial institutions to publish details of dormant accounts, unclaimed balances, and other financial assets on their websites.

This move aims to enhance transparency and ensure that rightful owners can reclaim their funds.

According to the CBN, a dormant account is one that has remained inactive for at least one year.

This directive was detailed 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.

What Information Will Be Made Public?

As part of this directive, banks are required to publish the following details:

• Account holder’s name
• Type of account
• Name of the bank
• Branch where the account is domiciled

For other financial institutions (OFIs) that do not have dedicated websites, the CBN has mandated them to publish this information on the website of their industry associations.

Additionally, banks must publish these details annually in at least two national newspapers or display them at state and unit microfinance bank branches.

Addressing Privacy Concerns

In response to concerns over data privacy, the CBN clarified that the directive complies with Nigerian laws. It cited:

1. Section 25(b) of the Nigeria Data Protection Act (NDPA), 2023, which allows exceptions for regulatory compliance.
2. Section 72 of the Banks and Other Financial Institutions Act, which grants the CBN the authority to regulate unclaimed funds.

Why This Matters

This directive builds on a previous CBN order issued on July 19, 2024, which required banks to transfer unclaimed balances and dormant funds to designated CBN accounts.

By making these details public, the CBN aims to:

• Prevent unauthorized access to dormant accounts
• Ensure rightful owners have a chance to reclaim their funds
• Increase transparency in Nigeria’s financial sector

What Should You Do If Your Account Is Dormant?

If you suspect that your account is inactive, now is the best time to act.

Contact your bank to reactivate your account before your funds are classified as unclaimed and transferred.

Do you support this move by the CBN? Drop your thoughts in the comments below!