In a significant policy shift, the Central Bank of Nigeria (CBN) has issued new guidelines for banks and financial institutions regarding the management of dormant accounts. Under the new directives, the CBN will assume control of funds in these dormant accounts, with plans to invest them in treasury bills and other approved securities.
The announcement was made in a circular released on Friday by John S. Onojah, the Acting Director of the Financial Policy and Regulation Department. The circular, titled “Guidelines on Management of Dormant Accounts, Unclaimed Balances and Other Financial Assets in Banks and Other Financial Institutions in Nigeria,” outlines comprehensive measures for handling unclaimed balances. Initially drafted in April, these guidelines have now been finalized and set to be implemented.
According to the CBN, unclaimed balances will be transferred to a specially created Unclaimed Balances Trust Fund (UBTF) Pool Account. These funds will be strategically invested in Nigerian treasury bills and other approved securities to generate returns. The principal amount, along with any accrued interest, will be refunded to rightful beneficiaries within ten working days upon request.
To reclaim funds from dormant accounts, account owners must complete an “Asset Reclaim Form” available at any branch of their financial institution. The form requires proof of account ownership, valid identification, proof of residence, and an affidavit confirming the information. Financial institutions are mandated to verify claims within ten working days and forward them to the CBN for processing refunds.
The CBN emphasized that the new guidelines are designed to ensure transparency and efficiency in the process of reclaiming dormant funds. Detailed information on unclaimed balances will be accessible on the websites of financial institutions, the CBN’s website, and through newspaper publications. The interest payable on unclaimed balances will be periodically determined by the CBN, which will also establish the profit and loss ratio for non-interest banks.
This move by the CBN aims to improve the management of dormant accounts, ensuring that unclaimed funds are utilized effectively while safeguarding the rights of account holders. The apex bank’s directive represents a proactive approach to financial regulation, balancing investment strategies with the need for operational transparency and efficiency in the banking sector.
