The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to transfer unclaimed balances and cash from dormant accounts to accounts controlled by the central bank.
The CBN has also issued regulatory guidelines to help account holders and beneficiaries recoup monies that have remained idle for up to a decade.
These regulations were detailed in a document released on Friday titled “Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria.”
A dormant account is one that has been idle for more than a year. According to the CBN, the amended recommendations are an update to those released in October 2015 and represent the most recent findings from their assessment process.
These new standards supersede the prior ones and become effective immediately. The major goal of these rules is to “identify dormant accounts/unclaimed balances and financial assets with the view of reuniting them with their beneficial owners.” Eligible accounts have balances that have been dormant for at least 10 years.
To administer these money, the CBN will create an account called the ‘Unclaimed Balances Trust Fund (UBTF) Pool Account’.
A management committee will oversee the administration of this account, ensuring that all standards are followed and that money are managed in accordance with the terms of the Banks and Other Financial Institutions Act (BOFIA) 2020.
Financial institutions and the Nigeria Deposit Insurance Corporation (NDIC) are key parties in this process.
The CBN requires account owners or beneficiaries to fill out a reactivation form in person.
To view the list of unclaimed sums transferred to the CBN, persons must present proof of account ownership, a valid form of identity, proof of current domicile, and an affidavit confirming the accuracy of the provided information.
The CBN requires account owners or beneficiaries to fill out a reactivation form in person.
To view the list of unclaimed sums transferred to the CBN, persons must present proof of account ownership, a valid form of identity, proof of current domicile, and an affidavit confirming the accuracy of the provided information.
The CBN has announced that it will enforce compliance by conducting both off-site monitoring and on-site routine and targeted examinations of banks and financial institutions.
This change is intended to streamline the handling of dormant accounts and unclaimed balances, ensuring that these money are safely maintained and available to their rightful owners.
It read; “The revised Guidelines, which operationalizes Section 72 of the Banks and Other Financial Institutions Act (BOFIA) 2020, followed engagement and consultations with relevant stakeholders, whose comments and recommendations were considered in the review process.
“It, amongst others, standardises the management of dormant accounts, unclaimed balances and financial assets, and outlines the procedure for the administration of these balances, funds, and assets by banks and other financial institutions in Nigeria.
“The modalities for the transfer of the relevant balances/funds/assets to the CBN, together with the revised templates for the rendition of quarterly returns to Banking Supervision Department or Other Financial Institutions Supervision Department (as the case may be) will be communicated subsequently.
“Hold the funds in trust for the beneficial owners; Standardize the management of dormant accounts/unclaimed balances and financial assets. Establish a standard procedure for reclaim of warehoused.
“Eligible dormant accounts/unclaimed balances and other financial assets shall include: Current, Savings and term deposits in local currency.
“Domiciliary accounts; deposits towards the purchase of shares and mutual investments; Prepaid card accounts and wallets; Government owned accounts.
“Proceeds of uncleared and unpresented financial instruments belonging to customers or non-customers of FIs.
“Obtain from the account owner evidence of ownership of the dormant account with valid means of identification, evidence of present place of residence, and affidavit on the accuracy of the information to reactivate the dormant account.
“Verify the information provided on the reactivation form; Not charge any fee for reactivation of dormant account. Reactivate the dormant account with the approval of two (2) authorized officers with one being at least the branch operations manager.
“Reactivate dormant accounts within a maximum of three (3) working days of receipt of a written application to that effect. Notify the account owner, free of charge, upon reactivation of the account. The profit and loss ratio on the unclaimed balances for non-interest banks shall be determined by the CBN from time to time;
“The FIs shall verify the claim and initiate the request with supporting documents to CBN within ten (10) working days;
“Application for reclaim shall be to the director banking services department, CBN; CBN shall refund unclaimed balance to the account owners/beneficial owners through their FIs within ten (10) working days from the date of the receipt of the FI’s request.
“Beneficial owners shall not make partial claims; and the right of beneficial owners to reclaim shall be indefinite.”
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