The Central Bank of Nigeria (CBN) has issued new directives mandating banks and financial institutions to transfer unclaimed balances and funds from dormant accounts to accounts held by the apex bank.
This move is part of efforts to streamline the management of dormant accounts and unclaimed balances, ensuring these funds are securely held and accessible to their rightful owners.
According to the CBN’s latest guidelines, dormant accounts are defined as those inactive for at least one year, with the revised rules superseding previous ones from October 2015. The guidelines aim to reunite dormant account holders with their funds, especially those that have remained dormant for a decade or more.
“The revised Guidelines, which operationalizes Section 72 of the Banks and Other Financial Institutions Act (BOFIA) 2020, followed engagement and consultations with relevant stakeholders,” the CBN stated. It further clarified that these guidelines standardize the management of dormant accounts, unclaimed balances, and financial assets, outlining procedures for administration by financial institutions.
To facilitate account reactivation, the CBN requires owners or beneficiaries to complete a reactivation form in person, providing specific documents for verification. The process includes proof of account ownership, valid identification, proof of current residence, and an affidavit confirming the accuracy of information provided.
In managing these funds, the CBN will establish an ‘Unclaimed Balances Trust Fund (UBTF) Pool Account’, overseen by a management committee to ensure compliance with regulatory guidelines. Key stakeholders such as the Nigeria Deposit Insurance Corporation (NDIC) and financial institutions will be involved in the operational processes.
The CBN emphasized that it will enforce compliance through regular surveillance and examinations of banks and financial institutions, both on-site and off-site. This regulatory oversight aims to guarantee that dormant funds are handled according to the provisions of the BOFIA 2020.
Overall, the objective of these measures is to uphold transparency and accountability in managing dormant accounts and unclaimed balances, ensuring that rightful owners can reclaim their funds without unnecessary hurdles.
