…Directs Directors With Bad Loans To Resign
The Central Bank of Nigeria (CBN) has directed deposit money banks (DMBs) and other financial institutions (OFIs) in the country to publish the details of customers’ dormant accounts on their official websites.
The latest directive to the banks and OFIs is contained in a circular titled CBN Orders Banks To Publish Dormant Accounts, Unclaimed Balances and signed by MichaeL Akuka, for the Director, Financial Policy and Regulation Department of the apex bank
The directive requires the DMBs and OFIs to display key details such as the names of individuals authorized to operate the accounts, the types of accounts, and the branches where they are domiciled.
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For OFIs that do not have dedicated websites, the apex bank ordered that the information should be published on the websites of their industry associations.
The circular reads: “In furtherance thereof, and in response to enquiries from stakeholders regarding the possible breach of the Nigeria Data Protection Act, 2023 (NDPA), banks and other financial institutions are required to note the following:
“1. Section 25 (b) of the NDPA permits justifiable deviations from the general principles of the Act. Also, 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.
“2. Information to be published on banks’ websites as well as the association’s website (where applicable) shall include the name of the account, the type of account, the name of the bank, and the branch where the account is domiciled ONLY.
“Information to be published annually in at least two national daily newspapers or the premises of State and Unit microfinance banks, shall also convey the details as listed in (2) above”, it added.
It would be recalled the CBN had earlier in an Order issued on July 19, 2024, required the DMBs and OFIs to transfer unclaimed balances and dormant account funds to its designated accounts.
In a related regulatory directive, the apex bank also ordered bank directors with non-performing, insider-related loans to immediately resign from their positions.
In a circular signed by its Acting Director of Banking Supervision, Adetona Adedeji, on Monday, the CBN stated that the measure was aimed at enhancing corporate governance and bolstering risk management within the banking system.
The directive also mandated all DMBs to regularise insider-related credit facilities that exceeded statutory limits within 180 days, or face regulatory sanctions.
