Nigerian banks have been instructed by CBN to disclose the names of account holders, account types, and domiciled branchesThe new guideline also required banks to list dormant accounts on their websites and in at least two national newspapers annuallyCBN said the directive complies with the Nigeria Data Protection Act (NDPA) 2023 to ensure transparency and accountability
Dave Ibemere, a journalist at Henzodaily.ng, has been reporting on business for over ten years. He has deep knowledge of the Nigerian economy, stock market, and general market trends.
The Central Bank of Nigeria (CBN) has directed Access Bank, United Bank for Africa (UBA), Guaranty Trust Bank (GTBank), and other financial institutions to publish details of dormant accounts and unclaimed funds.
This instruction is part of the new measures by the cbn to ensure transparency and accountability.
CBN set rules on dormant account management
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The apex gave the directive in a circular titled Guidelines on Management of Dormant Accounts, Unclaimed Balances and Other Financial Assets in Banks and Other Financial Institutions in Nigeria released on its website.
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According to the circular signed by Michael C. Akuka for the Director of Financial Policy and Regulation Department, banks must publish this information on their official websites while financial institutions without websites must use their association’s platform
Also, CBN directed that banks disclose the names of account holders, account types, and the branches where the accounts are domiciled.
Additionally, banks are required to publish the details in at least two national newspapers annually or display them at microfinance bank premises.
Part of the circular reads:
“The Guidelines on Management of Dormant Accounts, Unclaimed Balances and Other Financial Assets in Banks and Other Financial Institutions in Nigeria 2024, requires banks and some other financial institutions to publish on their websites, the names of individuals authorized to operate the accounts, the type of account and the address of the branch where the account is domiciled. In the case of other financial institutions (OFIs) without websites, to publish on their association’s website.”
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Also, the CBN clarified concerns over potential breaches of the Nigeria Data Protection Act (NDPA) 2023.
The CBN assured stakeholders that the publication is legally backed, citing Section 25(b) of the NDPA, which allows deviations under justified circumstances, and Section 72(ii) of the Banks and Other Financial Institutions Act.
“In furtherance of this directive and in response to inquiries from stakeholders regarding a possible breach of the Nigeria Data Protection Act, 2023 (NDPA), banks and other financial institutions are required to note the following:
“Section 25(b) of the NDPA permits justifiable deviations from the general principles of the Act. Additionally, Section 72(ii) of the Banks and Other Financial Institutions Act mandates the Central Bank of Nigeria to issue guidelines on the administration of unclaimed funds in banks and other financial institutions.
“The information to be published on banks’ websites, as well as on the association’s website (where applicable), shall include only the name of the account, the type of account, the name of the bank, and the branch where the account is domiciled.
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“The information to be published annually in at least two national daily newspapers or displayed at the premises of state and unit microfinance banks shall also include the details listed in (2) above.”
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Source: Henzodaily.ng