The Central Bank of Nigeria (CBN) has instructed banks and other financial institutions in the country to transfer all dormant accounts, unclaimed balances, and other financial assets to a designated account.
This directive was outlined in a guideline on the management of dormant accounts and unclaimed balances signed by John Onojah, the acting director of the Financial Policy and Banking Regulation Department at CBN.
The guideline states that dormant accounts and unclaimed balances held by banks for at least ten years will be moved to a special account known as the Unclaimed Balances Trust Fund (UBTF) Pool Account.
The CBN also mentioned that funds from these accounts may be invested in Nigerian Treasury Bills (NTBs) and other government securities.
It’s important to note that the new guideline, a revision of one issued in October 2015, excludes dormant accounts and unclaimed balances that are currently under litigation or investigation.
“CBN shall treat unclaimed balances (dormant accounts and financial assets) as follows:
“Open and maintain the ‘UBTF Pool Account’; Maintain records of the beneficiaries of the unclaimed balances warehoused in the UBTF Pool Account;
“Invest the funds in Nigerian treasury bills (NTBs) and other securities as may be approved by the ‘Unclaimed Balances Management Committee’;
“Refund the principal and interest (if any) on the invested funds to the beneficiaries not later than ten (10) working days from the date of receipt of the request and where it is imperative to extend the timeline, a notice of extension shall be communicated to the requesting FI stating reasons for the extension,” it said.
