CBN Directs Banks to Transfer Unclaimed Balances, Dormant Account Funds
The Central Bank of Nigeria (CBN) has issued a directive to all banks and financial institutions to transfer unclaimed balances and funds in dormant accounts to a dedicated account.
This mandate was outlined in a circular released on Friday, signed by John Onojah, the acting Director of the Financial Policy and Banking Regulation Department.
According to the CBN, any dormant accounts and unclaimed balances that have been inactive for at least ten years will be transferred to the Unclaimed Balances Trust Fund Pool Account (UBTF Pool Account).
The funds in these dormant accounts and unclaimed balances may be invested in Nigerian Treasury Bills (NTBs) and other government securities, as per the new guidelines.
The CBN clarified that the new guidelines, which are a revision of those issued in October 2015, exclude dormant accounts and unclaimed balances that are currently under litigation or investigation.
The directive specifies the following:
The CBN will open and maintain the UBTF Pool Account and keep records of the beneficiaries of the unclaimed balances housed in the account.
The funds will be invested in Nigerian Treasury Bills and other securities as approved by the Unclaimed Balances Management Committee.
The principal and any interest earned on the invested funds will be refunded to the beneficiaries within ten working days from the date of request. If an extension is necessary, a notice will be communicated to the requesting financial institution, explaining the reasons for the delay.
This move is part of the CBN’s ongoing efforts to manage unclaimed balances and dormant accounts more effectively, ensuring that these funds are utilized in a productive manner while still being available for rightful owners when claimed.
