The Central Bank of Nigeria (CBN) on Friday outlined a comprehensive procedure for account owners and beneficial owners to recover their funds that have been dormant for up to 10 years.
A dormant account is a bank account that has remained inactive for a period of at least one year.
The revised guidelines, which take immediate effect, aimed at ensuring transparency and efficiency, require individuals to follow a series of steps to recover their funds.
This was contained in the revised guidelines on the ‘Management of Dormant Accounts, Unclaimed Balances and Other Financial Assets in Banks and Other Financial Institutions in Nigeria’, issued by the CBN to banks and other financial institutions for implementation.
Read also: Explainer: What to expect as CBN plans to mop up dormant, unclaimed funds
In the guidelines, the CBN directed financial institutions (FIs) to transfer balances that have remained in the dormant account register for up to 10 years to the Unclaimed Balances Trust Fund (UBTF) Pool Account.
UBTF Pool Account means the account designated in CBN for warehousing the unclaimed balances in eligible accounts.
Account owners and beneficial owners can now easily access the list of unclaimed balances. The information will be available on the websites of Financial Institutions (FIs) and the CBN, as well as through newspaper publications. This ensures wide accessibility and awareness for potential claimants.
To initiate the reclaim process, individuals must visit any branch or office of their respective FIs and complete an ‘Asset Reclaim Form.’ This step formalises the request and sets the process in motion.
Claimants are required to provide evidence of account ownership, a valid means of identification, proof of current residence, and an affidavit confirming the accuracy of the provided information. These documents are essential to reactivate the account and ensure the legitimacy of the claim.
The interest payable on unclaimed balances will be determined periodically by the CBN. For Non-Interest Banks, the profit and loss ratio on unclaimed balances will also be set by the CBN, ensuring a fair and standardized approach.
Upon receiving the reclaim form and supporting documents, the FIs will verify the claim within 10 working days. The verified request will then be forwarded to the CBN’s director of banking services department. The CBN will process the refund and transfer the unclaimed balance to the account owners or beneficial owners through their FIs within 10 working days of receiving the FI’s request.
The new procedure stipulates that partial claims are not permitted, ensuring that claims are processed in full. Moreover, the right to reclaim unclaimed balances remains indefinite, providing long-term security for account owners and beneficial owners.
The CBN’s new guidelines represent a significant step towards enhancing the reclaim process for unclaimed balances. By ensuring a clear and structured procedure, the CBN aims to facilitate easier access to funds and uphold the rights of account holders across the country.
Read also: What customers can do to reclaim their money in dormant account
In a circular signed by John Onojah, acting director, financial policy and regulation department, the revised guidelines, which operationalises Section 72 of the Banks and Other Financial Institutions Act (BOFIA) 2020, followed engagement and consultations with relevant stakeholders, whose comments and recommendations were considered in the review process. It, amongst others, standardised the management of dormant accounts, unclaimed balances and financial assets, and outlined the procedure for the administration of these balances, funds, and assets by banks and other financial institutions in Nigeria.
“This Guidelines supersedes the Guidelines on the Management of Dormant Accounts and Other Unclaimed Funds by Banks and Other Financial Institutions in Nigeria, issued in October 2015 and takes effect immediately,” the circular stated.
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