CBN Gives Fresh Order To Banks On What To Do With Unclaimed Balances And Dormant Accounts

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CENTRAL Bank of Nigeria, CBN has given all banks and financial institutions in Nigeria fresh directives on what to do with all dormant accounts and unclaimed balances in their domain.

 

 

A circular released on Friday and signed by its acting Director of the Financial Policy and Banking Regulation Department, John Onojah, 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 added that the funds from dormant accounts, and unclaimed balances may be invested in Nigerian Treasury Bills and other government securities.

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The CBN, however, said the new guidelines which is a review of the guidelines issued in October 2015, exempted dormant accounts, and unclaimed balances under litigation and investigation.

 

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.

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“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.”

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