The Central Bank of Nigeria (CBN) has issued revised guidelines on the management of dormant accounts, unclaimed balances, and other financial assets in Nigerian banks and other financial institutions.
The new rules aim to identify dormant accounts and reunite them with their owners, establish standardized procedures for account management, and create a framework for reclaiming warehoused funds.
Under the revised policy, accounts deemed dormant after 10 years will be eligible for inclusion under the guidelines. These include various deposit types, prepaid cards, government-owned accounts, unclaimed salaries, proceeds from stale drafts, judgment debts, and other financial assets as designated by the CBN.
However, accounts subject to litigation, under investigation, or encumbered by collateral are exempted.
The CBN will establish an “Unclaimed Balances Trust Fund (UBTF) Pool Account” to hold dormant funds. A management committee will oversee the account’s operations, issue regulations, monitor compliance, and manage the fund in line with the Banks and Other Financial Institutions Act (BOFIA) 2020.
The CBN will also publish annual lists of unclaimed balances transferred to the UBTF Pool Account and outline procedures for reclaiming funds.
The Nigeria Deposit Insurance Corporation (NDIC) will assume the role of the financial institution for accounts in liquidation.
Financial institutions are mandated to monitor inactive accounts, notify customers, and establish procedures for continuous contact. They must also bear the costs of maintaining inactive and dormant accounts and render quarterly reports to the CBN.
To facilitate the reclaim process, account owners must inform financial institutions of changes in contact details and submit applications for reclaiming funds. Financial institutions must formulate policies for recognizing and managing dormant accounts, establish effective controls, and transfer eligible balances to the UBTF Pool Account.
The CBN’s move is expected to enhance transparency and accountability in the management of dormant accounts, protect the interests of account holders, and ensure the efficient utilization of financial resources.