The Central Bank of Nigeria (CBN) has directed banks to transfer balances that have remained in a dormant account register for up to 10 years to the Unclaimed Balances Trust Fund (UBTF) pool account.
Chibuzo Efobi, director, financial policy and regulation department of the CBN, said this in a circular to all banks and other financial institutions (OFIs), on ‘the Management of Dormant Accounts, Unclaimed Balances and other financial assets in Banks and Other Financial Institutions in Nigeria’, released on Thursday.
She said this was in request from banks and other stakeholders, for the CBN to further clarify the procedures for management of dormant and inactive accounts by banks in Nigeria.
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The exposure draft released along with the circular dated April 6, 2023 gave three weeks timeframe for stakeholders to make input through the director, financial policy and regulation department of the CBN.
The CBN on October 7, 2015, issued Guidelines on the Management of Dormant Accounts and Other Unclaimed Balances by Banks and Other Financial Institutions in Nigeria, to curb abuses in the operation of dormant and inactive accounts and set operational standards.
To strengthen the oversight functions of CBN on the management of dormant and unclaimed balances, the Banks and Other Financial Institutions Act, 2020 (BOFIA) made explicit provisions on unclaimed funds or abandoned property in FIs under the regulatory purview of the CBN.
“This Guidelines is, therefore, issued as an exposure draft pursuant to the powers conferred on the CBN Governor by the CBN Act 2007 and BOFIA 2020 and supersedes the 2015 Guidelines on the Management of Dormant Accounts and Other Unclaimed Balances by Banks and Other Financial Institutions in Nigeria,” the CBN said.
Details soon…
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