Cbn Orders Withdrawal Of Funds In Dormant Accounts, Unclaimed Balances

Infinity Media reports that the Central Bank of Nigeria (CBN) has issued revised guidelines on the management of dormant accounts, unclaimed balances and other financial assets in banks and other financial institutions in Nigeria to banks and other financial institutions for implementation.

This is according to the newly released “Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria,” by the CBN. 

According to the new guidelines, the CBN will create and manage a dedicated account called the “Unclaimed Balances Trust Fund (UBTF) Pool Account” to warehouse unclaimed balances. 

The guidelines also mandate that the principal and any accrued interest on the investments must be refunded to the beneficiaries within ten working days of receiving a request. 

The guideline document read: “CBN shall treat unclaimed balances (dormant accounts and financial assets) as follows: 

“i. Open and maintain the ‘UBTF Pool Account’; 

“ii. Maintain records of the beneficiaries of the unclaimed balances warehoused in the UBTF Pool Account; 

“iii. Invest the funds in Nigerian treasury bills (NTBs) and other securities as may be approved by the ‘Unclaimed Balances Management Committee’. 

“iv. 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. 

“v. 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 CBN’s guidelines stipulate several key objectives, including identifying dormant accounts and unclaimed balances, reuniting them with their beneficial owners, and holding these funds in trust. 

Eligible Accounts and Exemptions 

The new guidelines define eligible accounts as those that have remained dormant for ten years or more. 

These include various types of accounts such as current, savings, term deposits, domiciliary accounts, and prepaid card accounts. 

Other financial assets eligible under these guidelines include proceeds from unclaimed financial instruments, unclaimed salaries, wages, and bonuses, among others. 

However, the guidelines also list exemptions. Accounts subject to litigation, under investigation by regulatory authorities or law enforcement agencies, or encumbered accounts, such as those with liens or used as collateral, are excluded from these provisions.