The Central Bank of Nigeria (CBN) has ordered all banks and financial institutions to transfer dormant accounts, unclaimed balances, and other financial assets to its dedicated account.
The directive is aimed at consolidating dormant financial assets across the country.
This was revealed in a circular released on Friday, signed by the acting Director of the Financial Policy and Banking Regulation Department, John Onojah.
The directive mandates that all accounts that have been dormant for at least 10 years, along with other unclaimed balances, be moved to a designated Unclaimed Balances Trust Fund Pool Account.
This move is part of the CBN’s efforts to manage and utilize dormant financial resources more effectively.
In the circular, the CBN stated that these dormant funds may be invested in Nigerian Treasury Bills and other government securities, which is expected to provide a return on the otherwise idle funds.
However, the CBN noted exemptions in the guidelines for dormant accounts and unclaimed balances that are under litigation or investigation.
This latest directive is a review of the guidelines previously issued by the CBN in October 2015, which also sought to address the management of dormant accounts and unclaimed balances in the Nigerian banking sector.
The guideline reads, “CBN shall treat unclaimed balances (dormant accounts and financial assets) as follows:
“Open and maintain the ‘UBTF Pool Account’, maintain records of the beneficiaries of the unclaimed balances warehoused in the UBTF Pool Account.
“Invest the funds in Nigerian treasury bills (NTBs) and other securities as may be approved by the ‘Unclaimed Balances Management Committee.
“Refund the principal and interest (if any) on the invested funds to the beneficiaries not later than 10 working days from the date of receipt of the request and where it is imperative to extend the timeline, a notice of extension shall be communicated to the requesting FI stating reasons for the extension.”
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