The Central Bank of Nigeria (CBN) has implemented stricter regulations to manage dormant accounts and unclaimed financial assets in banks and other financial institutions.
These new guidelines, effective immediately, replace previous policies issued in 2015.
This was disclosed in a circular signed by John Onojah, Acting Director of the Financial Policy and Regulatory Department of the CBN, on Friday evening.
The guidelines, which are aligned with Section 72 of the Banking and Other Financial Institutions Act (BOFIA) 2020, were the result of engagement and consultations with relevant stakeholders, whose comments and recommendations were considered in the review process.
The guidelines therefore reduced the account inactivity period from six years of inactivity to 10 years of no customer activity.
After 10 years of inactivity, the guidelines allow for eligible account balances and unclaimed financial assets to be transferred to a special account administered by the CBN.
“Among other things, it standardizes 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.
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“The modalities for transfer of relevant balances/funds/assets to the CBN, together with revised templates for submission of quarterly returns to the Banking Supervision Department or the Other Financial Institutions Supervision Department (as applicable) will be communicated later,” it said.
The News Agency of Nigeria (NAN) reports that the new guidelines detail the roles and responsibilities of stakeholders.
The guidelines mandated the CBN to open and maintain accounts for the purpose of storing unclaimed balances in eligible accounts under a trust fund.
It also directed the central bank to establish a management committee that will oversee the operation of the Unclaimed Balances Trust Fund (UBTF).
The CBN will also manage the funds in accordance with the provisions of BOFIA 2020 and issue procedures for recovering stored funds and other financial assets, among other functions.
He added that eligible inactive accounts, unclaimed balances and other financial assets will include: current, savings and term deposits in national currency, domiciliary accounts; deposits for the purchase of shares and mutual investments; prepaid card accounts and wallets.
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Also listed were government-owned accounts; uncleared and unreported financial instrument income; unclaimed wages and salaries, commissions and bonuses, among others.
The guidelines, however, exempted accounts subject to litigation, judgment debts, accounts under investigation, and encumbered accounts, including but not limited to collateral and liens.
(YAYA)