The Central Bank of Nigeria (CBN) has mandated that all banks and financial institutions transfer dormant accounts, unclaimed balances, and other financial assets to a dedicated account established for this purpose.
According to a circular issued on Friday and signed by John Onojah, Acting Director of the Financial Policy and Banking Regulation Department, accounts deemed dormant or with unclaimed balances for at least 10 years will be consolidated into the Unclaimed Balances Trust Fund Pool Account (UBTF Pool Account).
The CBN noted that funds from these dormant accounts and unclaimed balances may be invested in Nigerian Treasury Bills and other government securities. However, accounts and balances that are currently under litigation or investigation are exempt from these new guidelines.
The updated guidelines, which replace those issued in October 2015, outline the following procedures for handling unclaimed balances and dormant accounts:
- Creation and Maintenance of UBTF Pool Account: The CBN will establish and manage the UBTF Pool Account, maintaining records of all beneficiaries of the funds stored in this account.
- Investment of Funds: Funds in the UBTF Pool Account may be invested in Nigerian Treasury Bills (NTBs) and other securities approved by the Unclaimed Balances Management Committee.
- Refund Process: Beneficiaries can request refunds of the principal and any accrued interest on the invested funds. The CBN is required to process these refunds within 10 working days of receiving a request. If an extension is necessary, the requesting financial institution will be notified of the new timeline and the reasons for the delay.
This initiative aims to streamline the management of dormant and unclaimed funds, ensuring they are effectively utilized or returned to their rightful owners.