CBN Issues Directives To Banks Over Unclaimed Balances, Dormant Accounts
The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to deposit unclaimed balances and funds in dormant accounts to the apex bank accounts.
In a circular released on Friday and signed by its acting Director of the Financial Policy and Banking Regulation Department, John Onojah, also issued regulatory guidelines for account owners and beneficial owners to recover their funds dormant for up to 10 years.
The Apex bank said all dormant accounts and unclaimed balances with banks for at least 10 years, will be warehoused in a dedicated account known as the Unclaimed Balances Trust Fund Pool Account.
The apex bank said the revised guidelines are a sequel to the conclusion of the review of the guidelines on the management of dormant accounts issued in October 2015.
The apex bank added that the funds from dormant accounts, and unclaimed balances may be invested in Nigerian Treasury Bills and other government securities.
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.”
Sodiq Lawal is a passionate and dedicated journalist with a knack for uncovering captivating stories in the bustling metropolis of Osun State and Nigeria at large. He has a versatile reporting style, covering a wide range of topics, from politics , campus, and social issues to arts and culture, seeking impact in all facets of the society.
