The Central Bank of Nigeria (CBN) has announced that next-of-kin, legal representatives, or beneficial owners can now claim unclaimed balances in dormant accounts.
This update, released over the weekend, provides a clear procedure for accessing these funds, requiring the submission of applications to financial institutions with legal proof of title.
The CBN’s new guidelines aim to streamline the management of dormant accounts and unclaimed funds, ensuring that beneficiaries can reclaim these balances efficiently.
The funds will be placed in the Unclaimed Balances Trust Fund (UBTF) Pool Account and invested in treasury bills and other securities, with the principal and any interest refunded to beneficiaries within 10 working days of a reclaim request.
To initiate the process, account owners or their representatives must visit financial institutions to complete a reclaim form, provide evidence of ownership, a sworn affidavit, and valid identification.
The financial institutions will then verify the claim and forward it to the CBN within 10 days, with the CBN refunding the money within 10 days of receiving the request.
The guidelines also address the management of dormant accounts if a financial institution’s license is withdrawn, stating that the Nigeria Deposit Insurance Corporation (NDIC) will then take over the management of these accounts.
Both dormant domiciliary accounts and other eligible accounts, such as current, savings, term deposits, and government-owned accounts, are affected by this policy.
Inactive accounts are defined as those without customer-initiated transactions for six to 12 months, while dormant accounts are those that have remained inactive for a year or more.
Unclaimed balances are those dormant for at least 10 years. Exemptions apply to accounts under litigation, investigation, or those that are encumbered.
The CBN has directed banks to notify account owners when an account becomes inactive or dormant and continue to do so on a quarterly basis.
This initiative follows a thorough review and consultation with relevant stakeholders and operationalizes Section 72 of the Banks and Other Financial Institutions Act (BOFIA) 2020, replacing the previous guidelines issued in October 2015.
John Onojah, Acting Director of the Financial Policy and Regulation Department, emphasized that the new guidelines standardize the management of dormant accounts, unclaimed balances, and financial assets, ensuring a transparent and efficient reclaim process.
