NDIC urges Heritage Bank depositors to comply with KYC for reimbursement

The Nigeria Deposit Insurance Corporation (NDIC) has called on the depositors of the now-defunct Heritage Bank, who are yet to receive their insured deposits, to comply with Know Your Customer (KYC) requirements as mandated by the Central Bank of Nigeria (CBN). 

Speaking at the 2024 edition of the NDIC Editors forum in Lagos, Bello Hassan, NDIC’s managing director and CEO, highlighted the challenges faced in reimbursing some depositors. He stressed that strict compliance with KYC protocols could resolve such issues effectively. 

This measure, according to the NDIC, is vital to facilitate smooth banking transactions and ensure prompt reimbursement in cases of bank closures.

Hassan, represented by Mustafa Ibrahim, executive director of operations said the Corporation is not unaware of the case of some depositors who are yet to access their guaranteed sums noting that the development is a result of reasons ranging from reconciling inconsistencies in the defunct bank’s depositor database to the absence of Bank Verification Numbers (BVN), placement of restrictions on some accounts, and, in some cases, name mismatches.

He assured depositors that efforts are ongoing to address these challenges. “The Corporation is working assiduously to resolve these issues and ensure that depositors are promptly paid,” he added.

Heritage Bank’s license was revoked by the CBN on June 3, 2024, leading to its closure. In line with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the NDIC Act 2023, the NDIC was appointed as the liquidator to oversee the bank’s resolution and manage depositor reimbursements which has seen the Corporation began paying insured deposits of up to N5 million per depositor within four days of the bank’s closure.

Ibrahim said for depositors with balances exceeding N5 million, the NDIC is working to ensure they receive the remainder of their funds through liquidation dividends. Hassan explained, “Depositors with amounts over the maximum insured amount of N5 million will be paid from the realisation of the defunct bank’s assets and recovery of debts.” He added that the Corporation has already begun recovering debts and realising investments and physical assets of the defunct bank to facilitate these payments.