CBN orders banks to publish details of dormant accounts and unclaimed balances
In a significant regulatory move, the Central Bank of Nigeria (CBN) has mandated all banks and financial institutions to publish details of dormant accounts and unclaimed balances. This directive is part of the CBN’s revised guidelines aimed at standardizing the management of such accounts and ensuring that funds are reunited with their rightful owners.
Key Highlights of the Directive:
Definition of Dormant Accounts: Accounts that have remained inactive for a period of ten (10) years or more are classified as dormant. These include current, savings, and term deposits in both local and foreign currencies, as well as prepaid card accounts and wallets.
Publication Requirement: Financial institutions are now required to publish details of dormant accounts to inform and alert account holders or their beneficiaries. This measure aims to reduce the risk of these funds being susceptible to fraudulent activities or remaining unclaimed indefinitely.
Transfer to CBN: Balances in accounts that have been dormant for ten years are to be transferred to the CBN’s “Unclaimed Balances Trust Fund (UBTF) Pool Account.” The CBN will hold these funds in trust and may invest them in Nigerian Treasury Bills and other government-approved securities.
Reclaim Process: Account owners or their legal beneficiaries can reclaim their funds by submitting a request through their financial institution. The process involves completing an asset reclaim form and providing necessary documentation to establish ownership. The CBN has committed to processing such claims within ten working days upon receipt from the financial institution.
Exemptions: Accounts under litigation, those undergoing fraud investigations, or those encumbered by a court order are exempt from this directive. Additionally, government-owned accounts are not subject to these guidelines.
This initiative underscores the CBN’s commitment to protecting depositors’ interests and promoting transparency within the Nigerian banking sector. By ensuring that dormant account holders are notified and given an opportunity to reclaim their funds, the CBN aims to foster trust and integrity in the financial system.
Account holders are encouraged to monitor their bank statements regularly and maintain active communication with their financial institutions to prevent their accounts from becoming dormant. For those with dormant accounts, it is advisable to contact the respective bank promptly to initiate the reactivation or reclaim process.
The CBN’s directive is expected to have far reaching implications, ensuring that unclaimed funds are managed responsibly and returned to their rightful owners, thereby enhancing confidence in Nigeria’s financial system.
