The management of dormant accounts and unclaimed balances would be handled by a separate office, the Central Bank of Nigeria (CBN) has revealed.
This is in line with the newly released “FAQs – Guidelines on Dormant Account and Unclaimed Balances – July 25, 2024” document from the CBN.
It holds that: “The CBN shall establish a dedicated office for this purpose. The office will be supervised by a Management Committee.”
Interest on invested monies will be released by CBN following account reactivation. The apex bank states that it will handle these monies in trust and that it will reimburse beneficiaries for the principal amount as well as any interest that has accumulated within ten working days of receiving a request for reclamation from the financial institution.
According to the FAQ document: “The interest payable shall be at a rate to be determined by the CBN from time to time. For Non-interest banks, the profit and loss on the unclaimed balances shall be determined by the CBN from time to time.
“The CBN will refund the principal and any interest on the invested funds to the beneficiaries within ten (10) working days of receiving a reclaim request from the FI,” it added.
The CBN further stated that financial institutions must notify clients as soon as their accounts become dormant or inactive, and they must do so on a quarterly basis.
A dormant account must be reactivated by account owners filling out a reactivation form at their individual financial institution, along with proper identification and proof of ownership.
BrandSpur banking and finance news reports that financial institutions are required to send unclaimed balances to the CBN after they have lain inactive for ten years.
It is expedient to know that:
- before now, the CBN has revealed that it might make investments with money from dormant accounts, unclaimed amounts in Nigerian Treasury Bills (NTBs), and other government securities.
- The Central Bank of Nigeria (CBN) has announced new guidelines on the management of dormant accounts, unclaimed balances, and other financial assets in banks and other financial institutions in Nigeria.
- The CBN will establish and oversee the “Unclaimed Balances Trust Fund (UBTF) Pool Account,” a special account designed to hold unclaimed funds, in accordance with the new standards.
- According to the criteria, accounts that are eligible for inactive status include government-owned accounts, prepaid card accounts and wallets, savings, term deposits in local currency, domiciliary accounts, deposits for shares and mutual investments, and current and savings accounts.
- Certain accounts, on the other hand, are not going to be deemed inactive; these include accounts that are encumbered with liens and collateral, judgement debts that are still pending in court, and accounts that are the subject of regulatory investigations.
- The Governor of the CBN, Yemi Cardoso, justified this policy by stating that the latest measure by the central bank is to safeguard the funds in dormant accounts, as they are more vulnerable to fraudsters in Nigeria.
