CBN Directive: Banks Begin Closure Of Accounts Of Unregistered Associations And Societies
Most of Nigeria’s banking service providers have recently commenced closing down the bank accounts of unregistered associations and societies domiciled in their respective banks pursuant to a directive of the Central Bank of Nigeria to that effect.
The Central Bank of Nigeria (CBN) had 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 to run their bank account freely 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.
One of such banks, Access Bank PLC in an earlier notice to its customers, had informed that it should begin closing such accounts from the 12th of July, 2022.
One of such emails 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 such 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 and that the registration of the Association is precedent to any further action that would have been taken on the account.
The reason of this directive from the Apex financial regulator, the CBN is yet to be verified by TheNigeriaLawyer at the time of filing this report even as we observed a surge in the volume of intending CAC registrations by Associations for the purpose of escaping the CBN’s order.