Banks obey CBN directive, move to close accounts of unregistered associations, societies, others

There are strong indications that Nigeria’s banking service providers have commenced the process of closing down the accounts of unregistered associations and societies domiciled in their respective banks pursuant to a directive of the Central Bank of Nigeria (CBN) to that effect.

The CBN recently directed that all Community Based Association bank accounts opened without CAC Certificate be closed on or before July 12, 2022.

It further directed any Association, Club, Town Union, Age Grade, Foundation, or Church account affected to register with Corporate Affairs Commissions and get a Corporate Affairs Commissions (CAC) Certificate, which will enable them operate their bank accounts without hindrance.

In view of this directive, some banks proceeded to notify their customers of the development and urged them to take steps to regularize such affected accounts.

Access Bank Plc, in an earlier notice to its customers, had notified affected customers that it shall begin the process of closing such accounts from July 12, 2022.

One of such mails read:

“Dear Esteemed Partner, Following CBN’s directive on unregistered Community Savings Accounts, please be advised that all associations or societies are expected to provide their registration documents on or before July 12th, 2022. All accounts regularized by this date will be closed accordingly.”

On other issues relating to unregistered accounts such as migration of funds, retrieval of money etc, the bank notifies customers that funds on closed accounts cannot be migrated or transferred, adding that the registration of the Association is precedent to any further action that would have been taken on the account.

The reason of the directive from the CBN is yet to be verified.

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