By Chinwendu Obienyi
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 a 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 operationalise Section 72 of the Banks and Other Financial Institutions Act (BOFIA) 2020, replacing the previous guidelines issued in October 2015.
According to the statement signed by the acting Director, Financial Policy and Regulation Department, John Onojah, the guidelines will standardise 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.
“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.
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 unpresented 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.