The Central Bank of Nigeria (CBN) will now supervise the transfer of funds from dormant accounts, assets, and unclaimed balances in Nigerian banks and other financial institutions.
The CBN explained that the new rules would oversee the management of inactive accounts, unclaimed balances, and other financial assets.
These new measures are the result of careful consideration and discussion with pertinent parties, the apex bank stated.
The old rules, which were released in October 2015, have been replaced with new ones that operationalize Section 72 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
According to a statement issued by John Onojah, acting Director of the Financial Policy and Regulation Department, the rules seek to standardise the handling of dormant accounts, unclaimed balances, and financial assets.
They also specify how these balances, cash, and assets will be administered by the country’s banks and other financial organisations.
“The modalities for the transfer of the relevant balances/funds/ assets to the CBN, together with the revised templates for the rendition of quarterly returns to Banking Supervision Department or Other Financial Institutions Supervision Department (as the case may be) will be communicated subsequently.
“These guidelines supersedes the Guidelines on the Management of Dormant Accounts and Other Unclaimed Funds by Banks and Other Financial Institutions in Nigeria, issued in October 2015 and takes effect immediately.
“These measures are expected to streamline and enhance the management of dormant and unclaimed financial assets in Nigeria’s banking sector,” the statement reads in part.
Recall that the apex bank had stated in April that accounts that qualify for this transfer include domiciliary accounts, prepaid card accounts, current, savings, and term deposit accounts; additionally, proceeds from unpresented financial instruments and stale drafts are also eligible.
The bank stated that these funds would be invested in government securities such as Treasury Bills and could be returned to the beneficiaries within 10 days of notice.
It further explained that the main goals of these guidelines are to identify and reunite dormant accounts and unclaimed balances with their owners, hold these funds in trust, standardise account management, and establish procedures for reclaiming warehoused funds.
