The funds in dormant accounts, assets and unclaimed balances in banks and other financial institutions in the country will henceforth be transferred to an account managed by the Central Bank of Nigeria (CBN).
This was contained in revised guidelines for the management of dormant accounts, unclaimed balances, and other financial assets in banks and financial institutions released by the apex bank at the weekend. This update follows a thorough review and consultation with relevant stakeholders.
The new guidelines operationalize Section 72 of the Banks and Other Financial Institutions Act (BOFIA) 2020, replacing the previous guidelines issued in October 2015.
According to the statement by the acting Director, of the Financial Policy and Regulation Department, John Onojah, the guidelines will standardize the management of dormant accounts, unclaimed balances and financial assets, and then outline the procedure for the administration of these balances, funds, and assets by banks and other financial institutions in the country.
It will be recalled that the apex bank had in April noted that eligible accounts for this transfer include current, savings, and term deposit accounts, domiciliary accounts, prepaid card accounts, unclaimed salaries and wages, as well as proceeds from unprecedented financial instruments and stale drafts.
The bank noted that these funds would be invested in government securities such as Treasury Bills and can be returned to the beneficiaries upon notice within 10 days, adding that the main objectives of these guidelines are to identify and reunite dormant accounts and unclaimed balances with their owners, hold these funds in trust, standardize the management of such accounts, and establish procedures for reclaiming warehoused funds.
