The Central Bank of Nigeria (CBN), issues fresh directives to banks and other financial institutions in Nigeria to transfer all unclaimed balances and financial assets in dormant accounts to its dedicated account.
The CBN made this known on Friday in a guideline (on the management of dormant accounts and unclaimed balances) signed by its acting Director of the Financial Policy and Banking Regulation Department, John Onojah.
The directive states that all unclaimed balances and dormant accounts with banks for up to ten years will be warehoused in a dedicated called the Unclaimed Balances Trust Fund (UBTF) Pool Account.
The apex bank will henceforth invest funds from dormant accounts may be invested in government securities like Nigerian Treasury Bills (NTBs). Dormant accounts and unclaimed balances under litigations are exempted from the new guidelines.
“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 ten (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,” The apex bank said.