Banks and other financial institutions are required by the Central Bank of Nigeria (CBN) to move cash and unclaimed balances from inactive accounts to accounts maintained by the central bank.
In order to help beneficiaries and account holders recover money that has lain dormant for up to ten years, the CBN has also published regulatory guidelines. The “Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria” paper, which was made public on Friday, contained specifics about these rules.
It said;
“The revised Guidelines, which operationalizes Section 72 of the Banks and Other Financial Institutions Act (BOFIA) 2020, followed engagement and consultations with relevant stakeholders, whose comments and recommendations were considered in the review process.
“It, amongst others, standardises the management of dormant accounts, unclaimed balances and financial assets, and outlines the procedure for the administration of these balances, funds, and assets by banks and other financial institutions in Nigeria.
“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.
“Hold the funds in trust for the beneficial owners; Standardize the management of dormant accounts/unclaimed balances and financial assets. Establish a standard procedure for reclaim of warehoused.
“Eligible dormant accounts/unclaimed balances and other financial assets shall include: Current, Savings and term deposits in local currency.
“Domiciliary accounts; deposits towards the purchase of shares and mutual investments; Prepaid card accounts and wallets; Government owned accounts.
“Proceeds of uncleared and unpresented financial instruments belonging to customers or non-customers of FIs.
“Obtain from the account owner evidence of ownership of the dormant account with valid means of identification, evidence of present place of residence, and affidavit on the accuracy of the information to reactivate the dormant account.
“Verify the information provided on the reactivation form; Not charge any fee for reactivation of dormant account. Reactivate the dormant account with the approval of two (2) authorized officers with one being at least the branch operations manager.
“Reactivate dormant accounts within a maximum of three (3) working days of receipt of a written application to that effect. Notify the account owner, free of charge, upon reactivation of the account. The profit and loss ratio on the unclaimed balances for non-interest banks shall be determined by the CBN from time to time;
“The FIs shall verify the claim and initiate the request with supporting documents to CBN within ten (10) working days;
“Application for reclaim shall be to the director banking services department, CBN; CBN shall refund unclaimed balance to the account owners/beneficial owners through their FIs within ten (10) working days from the date of the receipt of the FI’s request.
“Beneficial owners shall not make partial claims; and the right of beneficial owners to reclaim shall be indefinite.”
