CAC: CBN issues clarification on regularization of bank accounts of associations, others

The Central Bank of Nigeria (CBN) has said it did not direct Deposit Money Banks to seize funds of community associations domiciled in their vaults.

There has been apprehension among community development associations, cooperative societies and social clubs following reports that bank accounts of such organizations that are not properly registered with the Corporate Affairs Commission (CAC) or appropriate government agencies would be closed and their monies seized.

Anxiety within the affected associations heightened following a podcast that has gone viral in the social media.

A lady had claimed in the podcast that all associations that fail to regularise their documentation before July 12, 2022 would lose their funds. She, therefore, advised them to quickly withdraw their savings.

She had attached a letter written by a DMB to its corporate account holders as proof.
However, investigations have indicated that there was no such directive by the CBN.

A senior official of the CBN, who spoke on condition of anonymity, said: “How can a bank take over anybody’s or any group’s money? That’s not possible. What the bank said was that associations and the like should regularise their accounts in accordance with CAMA provisions, and nothing more.”

As learnt, the associations were expected to register with either CAC or Ministry of Trade & Cooperatives, depending on the status of the organisations and that there is nothing to panic about.

The directive of the apex bank, it was learnt, was to ensure appropriate compliance with the Know Your Customer (KYC) requirement in the Nigerian banking sector.

However, some banks apparently misunderstood to the policy, which prompted the CBN to issue the directive to ensure that members of such associations comply by regularising their documents.

Bank letter
The letter from a second generation, which has been in circulation, reads in part: “Following the directive of the CBN on unregistered Community Savings Accounts, please be advised that all associations or societies are expected to comply by providing their registration documents on or before July 12 , 2022.

“All accounts un-regularised by this date will be closed accordingly.

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