CBN Issues New Guidelines On Dormant Accounts And Unclaimed Balances.
The Central Bank of Nigeria (CBN) has issued a directive to all banks and financial institutions regarding the management of dormant accounts, unclaimed balances, and other financial assets. This directive, outlined in the Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria 2024, mandates financial institutions to publish details of such accounts.
According to the circular issued by the CBN’s Financial Policy and Regulation Department on 17 February 2025, banks and other financial institutions are required to disclose on their websites the names of individuals authorised to operate dormant accounts, the type of account, and the branch where the account is domiciled. For other financial institutions without websites, this information is to be published on their association’s website.
The CBN’s directive also addresses concerns about compliance with the Nigeria Data Protection Act (NDPA) 2023. The circular clarifies that Section 25(b) of the NDPA allows for justifiable deviations from general data protection principles, while Section 72(ii) of the Banks and Other Financial Institutions Act empowers the CBN to issue guidelines on unclaimed funds.
Furthermore, the guidelines specify that:
1. Banks and financial institutions must ensure that published information only includes the name of the account, type of account, name of the bank, and branch where it is domiciled.
2. In addition to online publication, the same details must be published in at least two national daily newspapers or within the premises of State and Unit Microfinance Banks.
This move by the CBN aims to enhance transparency and proper administration of unclaimed funds in the financial sector while ensuring compliance with existing laws. Financial institutions are expected to adhere strictly to these new guidelines to safeguard public trust and improve financial accountability.
