CBN orders banks to publish list of dormant account owners

The Central Bank of Nigeria (CBN) has ordered banks to publish annually, the list of dormant account owners in at least two national daily newspapers.

The order except for state and Unit microfinance banks, of which they are expected to publish in their premises.

The CBN in a circular tagged ‘guidelines on management of dormant accounts, unclaimed balances and other financial assets in banks and other financial institution’ explained that, “Information to be published shall include the name of account owner and address of the branch.

“It should also be stated that the account has been transferred to the register of dormant account and display a notice on the process of reclaim of unclaimed balances and other financial assets transferred to CBN in all its branches/offices, websites and other customer engagement points,” the CBN explained in a new circular on Friday.

According to the CBN, the objectives of the guidelines, amongst others are to identify dormant accounts/unclaimed balances and financial assets with a view to reuniting them with their beneficial owners; hold the funds in trust for the beneficial owners and standardize the management of dormant accounts/unclaimed balances and financial assets.

The CBN also order banks to monitor inactive accounts and notify the customers as well as protect such accounts from unauthorized usage, establish procedures that will ensure continuous contact with customers to reduce the incidence of inactive/dormant accounts and maintain records of procedures and periodic efforts to contact customers with inactive accounts.

The circular signed by acting director, financial policy & regulation department, CBN, Mr. John Onojah  to all banks and other financial institutions stated that the revised guidelines on the management of dormant accounts, unclaimed balances and other financial assets in banks and other financial institutions in Nigeria for implementation.

“This is sequel to the conclusion of the review of the guidelines on the management of dormant accounts and other unclaimed funds by banks and other financial institutions in Nigeria issued in October 2015. 

The revised guidelines, which operationalises section 72 of the Banks and Other financial institutions Act (BOFIA) 2020, followed engagement and consultations with relevant stakeholders whose comments and recommendations were considered in the review process. It amongst others, standardises the management of dormant accounts, unclaimed balances and financial assets, and outlines the procedures for the administration of these balances, funds and assets by banks and other financial institutions in Nigeria.

The modalities for the transfer of the relevant balances/funds/assets to the CBN, together with the revised templates for the rendition of quarterly returns to banking supervision department or other financial institution supervision department (as the case may be will be communicated subsequently.

This guidelines supersedes the guidelines on the management of the dormant accounts and other unclaimed funds by banks and other financial institutions in Nigeria, issued in October 2015 and  takes effect immediately.