The Central Bank of Nigeria (CBN) has issued a fresh directive to Financial Institutions operating in Nigeria concerning dormant accounts.
In the new directives, the apex bank will take over the funds in such dormant accounts and invest them in treasury bills and other securities.
This was contained in a circular FPR|DIR|PUB|CIR|002|011 released on Friday July 19, 2024 by John S. Onojah, Ag Director, Financial Policy & Regulation Department and titled “Guidelines On Management Of Dormant Accounts, Unclaimed Balances And Other Financial Assets In Banks And Other Financial Institutions In Nigeria”.
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In the circular obtained by The Matrix, the apex bank noted that it shall open and maintain an account earmarked for the purpose of warehousing unclaimed balances in eligible accounts.
“CBN shall treat unclaimed balances (dormant accounts and financial assets) as follows: Open and maintain an Unclaimed Balances Trust Fund (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’.
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“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. Where it is imperative to extend the timeline, a notice of extension shall be communicated to the requesting FI stating reasons for the extension” the circular stated.
The circular further disclosed that the apex bank will establish standard procedures for reclaim of warehoused funds; resolve escalated complaints relating to reclaim of warehoused funds.
The apex bank will also be saddled with the responsibilities of publishing annually on its website, the list of owners of unclaimed balances that have been transferred to the ‘UBTF Pool Account’; publishing on its website, the procedure for reclaim of warehoused funds and other financial assets; and publish annually a notice in three national daily newspapers inviting members of the public to check details of outstanding unclaimed balances in its custody” amongst others.
Earlier in April, the apex bank had unveiled the draft stage of the guidelines.
The Matrix understands that what the CBN wants to do is exactly what the Securities and Exchange Commission (SEC) has done with unclaimed dividends by channelling the funds into Unclaimed Funds Trust Fund.
