CBN Directs Banks to Transfer Unclaimed Balances, Dormant Account Funds
CBN Directs Transfer of Unclaimed Balances, Dormant Accounts Funds to Particular Account.
Banks and financial institutions have been directed by the Central Bank of Nigeria to transfer all sums lying in dormant accounts, all unclaimed balances, and other financial assets to a particular account. This is contained in a circular issued Friday and signed by John Onojah, Acting Director, Financial Policy and Banking Regulation Department.
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According to the CBN, any dormant accounts and unclaimed balances that have been inactive for at least 10 years will be transferred to the Unclaimed Balances Trust Fund Pool Account. The funds from these accounts may be invested in Nigerian Treasury Bills and other government securities.
The new guidelines are an update of those issued in October 2015. They exclude dormant accounts and unclaimed balances that are under litigation or investigation. The guidelines stipulate that the CBN will manage these unclaimed balances as follows:
- Open and maintain the ‘UBTF Pool Account’.
- Keep records of the beneficiaries of the unclaimed balances stored in the UBTF Pool Account.
- Invest the funds in Nigerian Treasury Bills and other approved securities.
- Repay principal and any accrued interest to the beneficiaries within 10 working days of any received request. In case an extension is necessary, the requesting financial institution shall be informed, including the basis for extending such.
This, therefore, is the step the CBN is taking to ensure that dormant funds and those that remain unclaimed in the banking system are managed and utilized better.